Regulators Requesting More Complex Trading Data as Part of Investment Adviser Exams — What Your Firm Needs to Know

ACA staff have observed an increase in the amount and depth of trading data being requested of investment advisers by regulators prior to exams. We have also seen regulator requests for such firms' calendars of their expert or issuer meetings held by associated persons, as well as a regulatory focus on forensic testing after those meetings.

ACA Guidance

We recommend that investment adviser firms take the following actions to help prepare for a similar regulator request or potential regulatory exam:

5 Things Investment Advisers Need to Know about Regulatory Investment in Trade Surveillance

ACA Compliance Group recently hosted the webcast briefing Regulatory Investment in Trade Surveillance – What You Should KnowKenny Clowers, Managing Director at ACA Compliance Group, and Farid Razzak, Data Science and Analytics Engineer at ACA Surveillance Technology, discussed how the SEC's ongoing commitment to developing its technological capabilities for detecting financial crimes

SEC Chairman Jay Clayton Notes Increase in Adviser Exams and Commitment to Expanding Technology

On June 27, 2017, U.S. Securities and Exchange Commission ("SEC") Chairman Jay Clayton presented testimony on the Fiscal Year 2018 Budget Request. During Chairman Clayton’s testimony, he emphasized the SEC’s commitment to protecting the investing public, maintaining fair markets, and facilitating capital formation.

ACA Technology Solutions Deploys New Algorithms for its Decryptex® Trade Surveillance Product that Comply with Current and Upcoming EU Regulations

ACA Technology Solutions (ACA), a leading provider of investment management and regulatory technology solutions, has enhanced its trade surveillance product, Decryptex®, to assist global clients in meeting the EU’s current Market Abuse Regulation (MAR) requirements and the EU’s upcoming revision to the Markets in Financial Instruments Directive (MiFID II).