News and Insights

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August 21, 2018 | Compliance Alert

The Financial Conduct Authority (FCA) recently issued a Questionnaire, "The Risk of Market Abuse in Asset Management firms", to a broad range of firms, requesting details on their arrangements and controls in this area. This appears to be part of a wider thematic programme of work outlined in its Business Plan for 2018/2019 – for a summary of that paper click here.

August 16, 2018 | Survey, Blog Article

As the Global Investment Performance Standards (GIPS®) gain more acceptance and international adoption, and with CFA Institute’s expected release of GIPS 2020 for public comment, there are persistent questions about the current state of GIPS compliance.

August 16, 2018 | Cyber Alert

This alert contains information about L1TF Intel vulnerabilities, a recurrence of ransom-driven distributed denial of service (RDDoS) attacks, a Microsoft AD FS multi-factor bypass vulnerability, and FBI warnings of a coordinated attack seeking massive ATM withdrawals.

August 16, 2018 | Press Release

August 16, 2018, Atlanta – A just-released survey of institutional asset managers, consultants and investors confirms compliance with the Global Investment Performance Standards (GIPS®) is on the rise, with 84% of asset managers responding saying their firms are GIPS compliant.

August 13, 2018 | Survey

Are you interested in how other firms make expense allocation decisions? Ever wonder what controls other private fund managers have implemented relating to the receipt of material non-public information? Are you curious as to what controls other private fund managers have implemented to safeguard client assets? 

August 9, 2018 | Press Release

ACA Aponix, a division of ACA Compliance Group, has expanded its team of cybersecurity and risk professionals with new employees who have extensive experience in various industries including financial services and banking, healthcare, manufacturing, real estate, and higher education. Recent new employees include:

August 8, 2018 | Blog Article

Last week, ACA hosted a regulatory breakfast briefing in Boston for our private fund adviser clients. I participated in a Q&A with ACA Senior Principal Consultant Mike Abbriano on what the SEC is looking for when they perform a regulatory cybersecurity exam, and how firms can build a best-in-class cybersecurity program that protects their data and keeps the SEC away. In this blog post I recap some key takeaways from the session.

August 8, 2018 | Compliance Alert

The U.S. Securities and Exchange Commission ("SEC") continues to invest in developing and improving its technology and data analytics capabilities. Through a combination of enhanced technology and training provided to examination staff, the SEC’s National Examination Program (“NEP”) has become more efficient, effective, and targeted when conducting on-site examinations.

August 7, 2018 | Press Release

ACA Compliance Group (“ACA”) announced today that Roy Kim has joined ACA’s regulatory compliance team as Director of Banking Asset Management. He is based in New York City.

August 6, 2018 | Article, Blog Article

ACA Technology's Burt Esrig recently shared his expertise on regulatory technology with Wells Fargo Prime Investment Services for their July 2018 Business Consulting and Regulatory Updates. Burt's article, Addressing the SEC's Examination Priorities and Focus Areas Using Technology, discusses how the SEC continues to invest in technology for accessing and analyzing data as part of investment adviser exams, and what investment advisers can do to keep pace with the SEC in this area.

August 6, 2018 | Survey

In response to the mutual fund industry’s need for transparency and insight into how peers are approaching the SEC's liquidity risk management program rule, ACA recently conducted a survey of mutual fund/ETF complexes and investment advisers/sub-advisers to mutual funds/ETFs. ACA received anonymous responses from 77 entities, with an almost even split between fund complexes and advisers. 

The survey covered the following topics:

August 2, 2018 | Case Study, Blog Article

ACA's NorthPoint Investment Management System (NorthPoint IMS) offers many benefits for leading asset managers. Our latest case study explains how a growing fixed income asset management firm had business challenges due to a lack of integrated portfolio compliance and straight through processing in their trading workflow. Their order management software did not have needed portfolio management features, and it did not have a robust, built-in compliance engine.

August 2, 2018 | Compliance Alert

The midterm elections are a few short months away, and a number of recent administrative proceedings against both registered investment advisers and exempt reporting advisers by the U.S. Securities and Exchange Commission (“SEC”) should serve as a valuable reminder of the importance of actively monitoring for risks that exposure to government entities or political parties may present. Here are helpful insights and suggested action items to help advisers mitigate these risks.

July 27, 2018 | Blog Article

The end result of a firm’s efforts when claiming compliance with the Global Investment Performance Standards (GIPS®) is the delivery of a fully compliant presentation to prospective clients. This is often distributed alongside the firm’s other marketing materials. The required statistics and disclosures that must be included in a compliant presentation are clearly listed in published guidance.

July 27, 2018 | Press Release

ACA is pleased to announce that we have been shortlisted for two awards by the 2018 HFM US Hedge Fund Services Awards. The awards recognize service providers that have demonstrated exceptional innovation, customer service, and performance to the hedge fund sector over the past 12 months.

July 26, 2018 | Press Release, Survey

Washington, DC (July 25, 2018) – For the fifth year in a row, cybersecurity continues to be the biggest compliance concern at registered investment adviser firms – with 81 percent of survey respondents identifying cybersecurity as the “hottest” compliance topic and nearly two-thirds indicating that their firms increased compliance testing in this area over the past year.

July 26, 2018 | Product Update

ACA is committed to meeting the growing demand from our clients to provide technology solutions that help them meet the ever-increasing regulatory demands they face today.

July 25, 2018 | Compliance Alert

On July 11, 2018, the Office of Compliance Inspections and Examinations (“OCIE”) released a risk alert regarding the most common deficiencies that the staff has cited in recent examinations of advisers’ compliance with their best execution obligations under the Investment Advisers Act of 1940 (the “Advisers Act”). Best execution, in accordance with the guidance provided by the staff of the U.S.

July 25, 2018 | Cyber Alert

This alert contains information about the Emotet modular Trojan, a breach at the ComplyRight human resources company, and repeated breaches at the National Bank of Blacksburg, Virginia.

July 24, 2018 | Compliance Alert

In July 2018, the Financial Industry Regulatory Authority (“FINRA”) issued Regulatory Notice 18-20 (“Regulatory Notice”) with respect to digital assets. FINRA notes in the Regulatory Notice that the market for digital assets, such as cryptocurrencies and other virtual coins and tokens, has grown significantly alongside investor interest in such assets.

July 23, 2018 | Blog Article

Compliance with the GIPS® standards is recognized as an industry best practice and has become a de facto requirement, especially in the institutional money management space, in order to stay competitive. A firm’s claim of GIPS compliance facilitates “apples-to-apples” comparisons between investment managers for prospective clients and fosters invaluable client trust.

July 19, 2018 | Compliance Alert

Last week the FCA published a clutch of papers on the extension of its Senior Managers and Certification Regime (“SM&CR”) to all firms authorised under Financial Services and Markets Act 2000 ("FSMA). Whilst these contained few surprises and confirmed our expectations on the timetable, we take the opportunity to delve into some of the more challenging aspects of the new regime and ask whether firms can take steps now to ease the burden of implementation.

July 16, 2018 | Compliance Alert

On June 28, 2018, the Securities and Exchange Commission (the “Commission”) voted (3-2 in favor) to adopt amendments to Forms N-PORT and N-1A regarding the reporting and disclosure of liquidity information by open-end investment companies.1 The adopted amendments track closely to the Commission’s proposal three months earlier. Namely, they address

July 16, 2018 | White Paper

Compliance with the GIPS standards is recognized as an industry best practice and has become a de facto requirement, especially in the institutional money management space, in order to stay competitive. A firm’s claim of GIPS compliance facilitates “apples-to-apples” comparisons between investment managers for prospective clients and fosters invaluable client trust.

July 13, 2018 | Compliance Alert, Blog Article

Cryptocurrency is one of the financial industry’s most trending topics. But the increase in popularity has also brought an increase in regulatory scrutiny.

What does this mean for compliance? What do investment advisers need to know?