On May 6, Tonkon Torp Financial Services attorneys Jessica Morgan, Christopher Pallanch, and Jarell Hunt hosted a webinar for investment advisors and private fund managers to explore how COVID-19 has impacted regulations, compliance requirements, examinations, and enforcement.
Jarell provided an overview of Form CRS and a look at COVID-19 disclosures and regulatory updates to Form ADV, including notable deadline changes and PPP loan disclosures. He also touched on a number of issues relevant to the adviser community such as custody of securities in a teleworking environment and the status of surprise examinations initiated prior to and during the pandemic.
Turning to compliance, Jessica recommended that advisors review and update their compliance policies relating to BCP, insider trading, and custody policies to accommodate pandemic conditions and in response to examiner requests. She also suggested that advisors review their CCO supervisory policies and practices in light of recent SEC red flags, and to document any changes to HR policies that have been made in response to COVID-19. Jessica wrapped up her segment with an update on a number of delayed final actions, and the status of changes to the Advertising and Solicitation rule.
Chris walked through current OCIE examination priorities, which to date are largely unchanged. He shared what Regulation Best Interest issues will be looked at this first year, and that the focus will be on whether firms have made a good faith effort to implement policies and procedures designed to comply with Regulation BI. During a review of recent enforcement actions by the SEC and OCIE, Chris pointed out that during a time that is clearly not business as usual, enforcement is proceeding as usual.
A recording of this webinar is available online. Webinar guests were encouraged to follow up directly with speakers to ask questions not addressed during the hour-long program. Tonkon Torp has published a COVID-19 Business Resource digest that is continually refreshed with news, alerts, and events that address a broad range of corporate topics.