Parker MacIntyre Hosts Seminar to Address Issues Faced by Registered Investment Advisers

On October 18, 2016, Parker MacIntyre hosted a seminar addressing legal issues that registered investment advisers (“RIAs”) often face, including developing cybersecurity guidance and implications of the new Department of Labor Fiduciary Rule.  The attendees consisted of sixteen individuals representing thirteen RIAs registered from around the southeast.  Both SEC-registered and state-registered RIAs were represented among the attendees.

Parker MacIntyre was pleased to welcome Noula Zaharis, the Director of the Securities and Charities Division of the Secretary of State of Georgia, as a guest speaker.  She began the seminar with a presentation on how the Georgia Secretary of State registers and regulates investment advisers and common deficiencies encountered by the Georgia regulators.  Highlights from another presentation, entitled “Common Deficiencies, Exam Priorities, and Regulatory Initiatives,” included common deficiencies found in RIA examinations, exam priorities that RIAs should ideally be aware of, and the Secretary of State’s regulatory initiatives.

The seminar continued with two presentations on cybersecurity.  Cherie Tolbert, Vice President of NFP, began with a presentation entitled “Cyber Security Insurance,” which addressed the growing need for cybersecurity insurance and how each cybersecurity insurance policy should be selected based on a firm’s unique needs.  Bryan Gort, an associate at Parker MacIntyre, continued with a presentation entitled “Cyber Insecurity,” which addressed examples of SEC cybersecurity-related enforcement actions against RIAs, statistics from studies regarding cybersecurity practices, SEC regulatory guidance on cybersecurity, and state breach notification laws.

After the presentations on cybersecurity, Mr. Gort and Patricia Klusmeyer, another associate at Parker MacIntyre, gave a presentation entitled “Best Practices for Advertising.”  This presentation addressed common deficiencies found in RIA advertising, such as untrue or misleading statements, testimonials, and misuse of abbreviations.

Mrs. Klusmeyer concluded the seminar with a presentation entitled “DOL Fiduciary Rule: What it Means for RIAs.”  This presentation addressed the Department of Labor’s prohibitions against transactions between a retirement plan and the plan’s fiduciary and transactions involving self-dealing.  Highlights of this presentation included a discussion of the new definition of “fiduciary” under ERISA and the Internal Revenue Code, how to determine what fiduciary investment advice is, and what constitutes a “recommendation” from an adviser to an advice recipient.  The presentation also addressed the new best interest contract exemption and its requirements.

Parker MacIntyre provides legal and compliance services to investment advisers, broker-dealers, registered representatives, hedge funds, and issuers of securities, among others.  Our regulatory practice group assists financial service providers with complex issues that arise in the course of their business, including compliance with federal and state laws and rules.  Please visit our website for more information.