Checklist of Key Compliance Obligations for SEC-Registered Investment Advisers

September 14, 2010

By registering with the SEC, an adviser becomes subject to a range of substantive provisions of the Advisers Act, including requirements to develop, implement, update and supervise a variety of compliance policies and procedures, including a code of ethics.  Implementing a compliance program is not a standard process, but rather requires customization to fit the particular business of an adviser.  A registering adviser should not delay in assessing the steps to be taken to implement a compliance program and designing a plan for timely implementation. 

SEC-registered advisers are required to designate a chief compliance officer and to assess the adequacy and effectiveness of its compliance policies at least annually.

Newly registering advisers become subject to periodic and "for cause" examination by the SEC, which will focus on the records of the adviser and issue deficiency letters.

Click here for a summary checklist of some of the key compliance obligations of SEC-registered investment advisers.