Regulatory compliance is the process of ensuring that a business or individual adheres to applicable laws, regulations and self-regulatory organization (SRO) rules. For investment advisers and broker-dealers, this includes complying with the Investment Advisers Act of 1940, the Securities Exchange Act, CFTC and FINRA rules, anti-money-laundering regulations, sanctions programs and tax laws. Compliance programs typically include written policies and procedures, training, monitoring and internal controls.
Related questions
How can I get assistance with regulatory compliance for digital assets? Sadis counsels digital-asset fund managers and trading platforms on registration and licensing requirements, AML/KYC compliance, custody solutions and disclosure obligations. The firm also defends clients in SEC and CFTC investigations involving digital-asset offerings.
When must a firm or representative deliver Form CRS to a retail customer? Form CRS (Client Relationship Summary) is required under the SEC’s Form ADV and Regulation BI rules. Broker-dealers and investment advisers must deliver Form CRS to a retail investor before or at the earliest of: (1) entering into an investment-advisory or brokerage contract; (2) recommending a securities transaction or investment account; (3) placing an order for the retail investor; or (4) opening a brokerage account. Firms must also post the form on their websites and update it when information changes.
What is EDGAR Next? EDGAR Next is the SEC’s initiative to modernize the EDGAR filing system. Under rules adopted in 2024, filers will be required to obtain individual account credentials through login.gov, use multifactor authentication and designate at least two account administrators.
