Compliance & Monitoring
The regulatory environment for investment advisors and fund managers is changing at breakneck speed.
Fueled by the market meltdown, embarrassing public fraud cases and allegations of “pay to play” influencing investment decisions, the SEC will impose sweeping new regulations that will impact advisors involved in public pension funds investments.
Investment advisors may soon face:
- Prohibitions on using third-party marketers to solicit investments from public pension funds.
- Bans on making, soliciting, or bundling campaign contributions to certain candidates for office.
- Additional recordkeeping and document compliance requirements.
These new restrictions – on top of new regulations by states and municipal authorities –will create a maze of overlapping and potentially conflicting regulations.
The proposed penalties for violations are significant including a two-year ban on compensation from affiliated public pension funds, even if the violation was inadvertent.
Total Spectrum can help guide you through the maze.
- Updates on Changes in Applicable Federal and State Laws and Regulations
We carefully monitor SEC and other state and federal regulations and keep clients updated on new laws that affect their business. These include new regulations concerning political contributions, third-party marketers, registration, and recordkeeping requirements. - Create Policies and Procedures for Handling Political Contributions
We draft a personalized political contribution plan for our clients and their employees to help ensure political contributions do not run afoul of regulations. - Required Recordkeeping for “Covered Associates” and Other Matters
New SEC regulations impose additional recordkeeping requirements on advisory firms. These regulations will identify all employees or covered associates of advisory firms who fall under the new regulations, and then require each advisor to disclose those government entities to which he or she has provided services and made political contributions. An official list must be created and maintained to ensure compliance with these new regulations. - Pre-Clearance of Campaign Contributions
We review and pre-clear all political contributions made by the client, members of their family, and/or employees in order to ensure they do not legally imperil their business