Here are the questions we most frequently hear from investors:
Here are the questions we most frequently hear from investors:
Chris: An investment advisor is required to supervise all persons that are acting on its behalf. The SEC takes the position that they can sanction an advisor if they fail to reasonably supervise anyone who is acting on the advisor's behalf. Determining whether someone is a supervisor is, again, based on the factual circumstances.
There are a few safe harbors but the best advice is to have some compliance procedures in place or elect a compliance officer in those instances.
Some of additional requirements are that compensation structures need to be disclosed, conflicts of interests have to be more thoroughly disclosed than they necessarily would have to be if you weren't registered.
The SEC is also going to look at you on an annual basis, and under a heightened level of scrutiny because you will be filing Form ADV.
