Kilpatrick Townsend

OCIE Releases Risk Alert on Compliance Risks During COVID-19

Yesterday, the Office of Compliance Inspections and Examinations issued a risk alert related to COVID-19 compliance risks (“Risk Alert”).[1] The Risk Alert applies to both investment advisers and broker-dealers and highlights six categories of compliance risk:

  • Protection of investors' assets;
  • Supervision of personnel;
  • Practices relating to fees, expenses, and financial transactions;
  • Investment fraud;
  • Business continuity; and
  • Protection of investor and other sensitive information. 

If you have questions about the Risk Alert, COVID-19 relief, or the regulation of investment advisers or broker-dealers, please feel free to contact us. 

By the Investment Management and Broker-Dealer Team at Kilpatrick Townsend & Stockton

Footnotes

[1] SEC Office of Compliance Inspections and Examinations, Select COVID-19 Compliance Risks and Considerations for Broker-Dealers and Investment Advisers (August 12, 2020), available at https://www.sec.gov/files/Risk%20Alert%20-%20COVID-19%20Compliance.pdf.