Quarterly Regulatory Information and News: AMC Compliance
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Firms are required annually to renew their FINRA, other self-regulatory organization (SRO) and state/jurisdiction registrations through the annual Renewal Program, which begins in the fourth quarter of each year. FINRA collects all applicable renewal fees on behalf of itself and participating regulators, which enables firms to submit their total renewal payment to FINRA instead of each regulator.
Firms must pay all applicable renewal fees assessed on its Preliminary Statement for the firms, the firms’ branch offices and associated individuals to ensure continued eligibility to do business in the upcoming year. Renewal statements are only accessible through E-Bill. Renewal reports will continue to be available through Web CRD/IARD for reconciliation purposes.
Firms must use their FINRA Renewal Accounts to pay their annual renewal fees. Beginning on the renewal payment deadlines, FINRA will transfer funds from a firm's Flex-Funding Account to its Renewal Account assuming the firm has sufficient funds to cover their total assessment.
Firms should make sure they are prepared by, among other things, reviewing the 2017 Renewal Calendar.  AMC Compliance can assist your firm with the annual renewal process and provide assistance with preparing and filing the Form ADV and Form BD annual update amendment when the time comes.


Rule 206(4)-(7) of the Investment Advisers Act requires RIAs to conduct an annual review of their compliance policies and procedures and implement any updates, if necessary. Such annual review should be conducted with a special attention to an RIA's business model and operating environment. The review should be tailored to reflect any changes during the year and reflect a determination of controls needed to manage or mitigate the unique risks applicable to the RIA. The review should be documented and such documents presented to the RIA's chief executive officer or executive committee, as applicable, and retained in the RIA's files. Call us to assist with your review.
Form ADV: All RIAs and ERAs must file an annual amendment to Form ADV with the SEC and/or state securities authorities within 90 days of fiscal year end. Note that any material change to an adviser's business in the course of the year requires amending the Form ADV promptly after the change. Information regarding investment advisory representatives also should be updated and properly reported on the IARD system.
Form ADV
Brochure Delivery: RIAs must disclose Part 2A (the Brochure) to "clients" within 120 days of the end of an RIA's fiscal year. The SEC has acknowledged that "clients" for this purpose does not include fund investors. Nevertheless, many RIAs voluntarily deliver the Brochure to fund investors.
Form PF: RIAs generally must file an updated Form PF with the SEC within 120 days of fiscal year end. Advisers to large hedge and liquidity funds must file on a quarterly basis within 60 days and 15 days, respectively, of quarter end.
SEC Form D: Form D filings for funds with ongoing offerings need to be amended annually at a minimum, on or before the anniversary of the initial Form D filing. Certain changes during the course of a year also may trigger a Form D amendment obligation. Additionally, note that offers to U.S. persons may trigger filing obligations in an investor's state of residence.
Schedule 13G/D
& Section 16 Filings: Advisers with investment discretion over funds that are beneficial owners of 5 percent or more of a registered voting equity security must report these positions on Schedule 13G or Schedule 13D. Schedule 13G filings must be updated annually within 45 days of the end of the calendar year. Schedule 13D filings need to be amended when any material change (including a change of 1 percent or more of the securities reported as beneficially owned) in the prior Schedule 13D has occurred. Any necessary Section 16 filings (i.e., Form 3, 4 or 5) also should be reviewed.
Form 13F: An adviser must file a Form 13F if it exercises investment discretion with respect to $100 million or more in certain identified 13F securities within 45 days after the end of the year in which the adviser reaches the $100 million filing threshold. The measurement date for calculating $100 million threshold is as of the last calendar day of any month in a given year. Thereafter, advisers must make 13F filings within 45 days after end of calendar quarter.
Form 13H: Advisers meeting the SEC's "large trader" thresholds (i.e., trades (i) 2 million shares or $20 million FMV daily or (ii) 20 million shares or $200 million FMV monthly) are required to file an initial Form 13H with the SEC within 10 days of triggering the threshold. Large traders also need to amend Form 13H annually within 45 days of year-end and make quarterly update filings to the extent that information changes.
Annual Privacy
Policy Notice: SEC Regulation S-P requires current privacy policies to be circulated annually to RIA clients. However, pursuant to the ‘‘FAST Act,” investment advisers, among others, may no longer be required to send annual privacy notices if the investment advisers do not share non-public personal information with third parties for marketing purposes.
Commodity Pool
Operator Exemption: Advisers relying on the exemption from registration with the CFTC pursuant to the "de minimis exemption" of CFTC Regulation 4.13(a)(3), must reaffirm their claim of exemption with the National Futures Association each year annually within 60 days of the end of the calendar year.
Department of Labor finalized Rule to address conflicts of interest in retirement advice. Under ERISA, individuals providing fiduciary investment advice to plan sponsors, plan participants, and IRA owners are not permitted to receive payments creating conflicts of interest without a prohibited transaction exemption.
Regulatory compliance, risk management, and corporate governance advisory services that help the asset management sector understand and implement regulatory directives.

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Cybersecurity Considerations for Small Firms

Notices, Comments, & Announcements
FINRA is conducting a review of Unit Investment Trust (UIT) rollovers. FINRA and other regulators conduct targeted exams, known as sweeps, to gather information and carry out investigations. Sweep information is used to focus examinations and pinpoint regulatory response to emerging issues.
  • Form PF due for RIAs (Large Liquidity Advisers)
  • Annual FINRA RIA and BD Renewal begins
  • Form 13F due for 13F Filers
  • Form PF due for RIAs (Large Liquidity Advisers)
EFOCUS System Framework
FINRA has enhanced the Electronic Financial and Operational Combined Uniform Single (EFOCUS) application, which firms use to file specific financial and operational reports pursuant to SEC and FINRA rules, with a new dashboard layout. Access to the EFOCUS system through the Firm Gateway, FOCUS forms layout and navigation remain unchanged.
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Silver Spring, MD 20903
Tel: 301-523-6427

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On September 27, 2016, the SEC announced that it will host a public forum to discuss financial technology (Fintech) innovation in the financial services industry on November 14, 2016 at its Headquarters. The SEC said that the forum is designed to foster greater collaboration and understanding among regulators, entrepreneurs and industry experts into Fintech innovation and evaluate how the current regulatory environment can most effectively address these new technologies.
Enjoy the following quotes:
“I believe that voting is the first act of building a community as well as building a country.” Former Senator, John Ensign
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Copyright © * October 2016 * * AMC Compliance Solves * All rights reserved.

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AMC Compliance · 1751 Elton Road, Suite 110 · Silver Spring, MD 20903 · USA

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