Broker-Dealers and Investment Advisers
Securities broker-dealers and investment advisers are confronted with unprecedented compliance challenges as accelerated rulemaking has swept the industry. An intense exam environment and hard-hitting enforcement actions have caused a dramatic surge in reputational risk. The foundations have been laid for even more significant changes in the future. Legacy compliance programs that may have been adequate a year ago may be inadequate today.
MDO Partners has the expertise to help navigate the regulatory maze and reduce the risk associated with heightened regulatory demands. Our team has significant experience performing regulatory work for investment advisers and broker-dealers and has a strong baseline knowledge of current industry leading practices. We have advised a broad range of firms, including bank affiliated broker-dealers, insurance broker-dealers, M&A broker-dealers, asset managers, fund advisers, and dealer managers.
The team’s experience includes:
• Comprehensive representation of firms in all aspects of federal, state, and SRO adviser and broker-dealer registration, including preparing FINRA membership applications and continuance in membership applications and investment adviser registration applications and documents, including Form ADV Part 2A and Part 2B;
• Structuring, developing, and assisting in the implementation of compliance and internal supervisory support systems, including the preparation of risk assessment matrixes, written supervisory procedures, compliance manuals, AML programs, insider trading policies, and identity theft prevention programs;
• Developing model forms to evidence compliance with SEC and FINRA rules;
• Preparing sales representative agreements, introducing broker agreements, solicitor agreements and referring agent agreements;
• Preparing Firm Element Needs Analysis and training programs tailored to the Firm;
• Preparing expense sharing agreements;
• Advising on bank networking arrangements;
• Reviewing promotional materials, including Web site content, advertisements and sales literature;
• Preparing customer new account forms, new account agreements, and customer disclosures;
• Advising on sales practice issues, customer grievances, regulatory examinations, disciplinary matters, security breach issues, and self-reporting requirements;
• Advising on books and records requirements, retention, and data destruction guidelines; and
• Performing internal audits of broker-dealers and investment advisers.