SEC Cracks Down on Compliance Deficiencies for RIAs

In a recent sweep of RIAs SEC examiners found widespread compliance deficiencies. Over half of the RIAs examined were cited for deficiencies relating to portfolio management practices, investment recommendations, managing and disclosing conflicts of interest, and appropriate investment allocations. Specific areas of concern included:

  • Outdated policies, controls, and procedures
  • Not adhering to stated policies, controls, and procedures
  • Inconsistencies between home office and branch office operations
  • Of particular concern were: ethics, custody, supervision, advertising, and fiduciary obligations relating to fees and expenses

Miterko & Associates has over 35 years of experience with SEC and FINRA regulatory compliance, including in-depth capabilities relating to due diligence and alternative investments. Our expertise can help RIAs avoid regulatory problems by evaluating the adequacy of, or creating, written supervisory procedures (WSP’s). We then sample test home and branch office compliance with those WSP’s. Outsourcing some…or all…of your due diligence research and documentation to us will free up your time for client relationships and revenue-generating activities.  

Miterko & Associates is a specialized due diligence consulting firm with over 35 years of direct industry experience. For more information about our services, visit our website at, and click here to follow us on LinkedIn. 

Source: News/November 16, 2020