Investment Advisors

Policies and Procedures Development and Review

BRC’s consultants understand that an Adviser’s Policies and Procedures are often considered the cornerstone to a successful compliance program. Since no two investment advisers are identical, BRC seeks to work in concert with our clients to ensure that their Policies and Procedures are reasonably designed, selectively customized, and updated to meet each client’s current business practices and existing regulatory requirements. BRC also understands that even the most robust Policies and Procedures may become outdated over time if not reviewed and appropriately revised to meet the changes of an Adviser’s business model and regulatory landscape. As regulatory examination findings are often related to “Inadequate Policies and Procedures”, it is essential for each Adviser to conduct a periodic review of its procedures and related controls for adequacy. BRC provides an independent and targeted expertise to each of its reviews, whether you are in need of a new Blueprint, or you are seeking the peace of mind associated with knowing that your procedures are appropriate and up to date. BRC’s clients also rely on its consultant’s ability to develop new policies and procedures surrounding regulatory changes and modifications to their business models.

Annual Compliance Program Reviews

Rule 206(4)-7 under the Investment Advisers Act of 1940 (the “Adviser’s Act”) requires Investment advisers to review its policies and procedures at least annually to determine their adequacy and the effectiveness of their implementation. Such a review should be specific enough to consider any changes in an Adviser’s business, personnel, and the overall regulatory landscape. While it is not specifically mandated, the implementation of a annual compliance review program that incorporates the independent input of an experienced partner like BRC, is considered by many as more robust; in addition, many firms and their Chief Compliance Officers benefit from a the peace of mind that utilizing independent customized review provides their firm with insight from industry experts with direct regulatory examination experience. While utilizing an independent team to assist in an Adviser’s annual review requires an additional allocation of resources, such a commitment substantiates and demonstrates the Adviser’s dedication to maintaining a strong culture of compliance, and not one that appears rich in conflict. BRC’s annual reviews certainly vary in scope due to the customized nature of the assessments, yet, at a minimum, each review is far-reaching, covering all general areas typically applicable to Advisers, including, but not limited to:

• Compliance Manual Procedures;
• Registrations and filings;
• Marketing and Performance Advertising;
• Pricing and Valuation;
• Trading Practices;
• Disaster Recovery Planning;
• Privacy/Identity Theft and Cybersecurity;
• Fraud and Insider Trading; and
• Financial Operations.

Simulated Audits and SEC Inspection Support

In addition to conducting annual compliance reviews for Investment Adviser’s, BRC specializes in providing Adviser’s with simulated or mock SEC inspections, helping ensure clients know what to expect when an SEC is commenced. BRC also has found that through simulated reviews, Advisers are often able to be notified of potential compliance gaps that may be present in their compliance programs and take pro-active corrective measures prior to these items being identified by regulatory staff. While from time-to-time, compliance exceptions are not items that can be overturned, per se, Advisers are able to send a message to regulatory staff that the Adviser is committed to correcting exceptions promptly upon identifying via internal scrutiny and controls. This pro-active exercise is often considered a significant mitigating factor to regulatory examination staff when determining final outcome of examination findings. Onsite regulatory inspections can be one of the most stressful times faced by an Adviser and its compliance staff. BRC offers its substantial direct regulatory experience by providing onsite consulting services, designed to assist Advisers in interpreting, preparing, and completing responses to regulatory requests.

Anti-Money Laundering Reviews

Despite the lack of specific regulations related to Investment Advisers AML program requirements, BRC typically recommends that Adviser’s establish, maintain, and implement a customized AML programs, that, at a minimum, defines how the Adviser will adequately identify its clients, monitor for and identify suspicious activity; and act appropriately in the event suspicious activity is identified. Since all investment advisers are unique, the scope of an Adviser’s AML program will vary, yet, should seek to conform to the general requirements of the Bank Secrecy Act. Aside from the regulatory perspective, it is more commonplace in the industry today that entities that Advisers conduct business with (including broker-dealers and banks) require Advisers to attest to maintaining and implementing an adequate AML program. BRC’s AML related compliance solutions include, but, aren’t limited to:

• Annual AML Policies and Procedures Testing;
• Simulated Regulatory AML reviews;
• SEC/FINRA mandated reviews;
• OFAC support Services;
• Due Diligence and Customer Identification Support Services; and
• AML Training.

Investment Adviser Registration Services

When seeking SEC or State registration, you may discover that the process is often more complex than first expected. During this process, BRC will become a partner to keep you focused, while helping to ensure proper communication between all parties, including regulators. During this registration process, BRC’s compliance consultants will assist your new Adviser in preparing a relevant and complete registration filing designed to appropriately structure your adviser’s compliance program. Services typically included in our Registrations Program, include:

• Preparing required forms during the process, including Form ADV Part 1, 2A and 2B;
• Preparing required Wrap Program Brochure (as, applicable);
• Providing Assistance with IARD/Web CRD;
• Assisting with Exam Registrations Requirements for Associated Persons;
• Aiding in the preparation of correspondence relevant to the process; and
• Liaising – Unlimited telephone consulting during the Registrations process.

Form ADV Filing and Review Services

Rule 204-1 under the Adviser’s Act requires Advisers to maintain and disseminate its Form ADV. BRC’s consultants assist clients in the preparation and maintenance of all applicable aspects of its Form ADV, including Part 1, Part 2A, Part 2B, Schedule A, Schedule B, Schedule C, Schedule D, and Schedule F. BRC will assist clients to help ensure that such forms will be prepared and maintained in a customized fashion, designed to meet the specific characteristics of each unique Adviser. Whether you are part of new Investment Adviser, or an existing Adviser that has experienced recent changes, BRC’s Form ADV solutions are a sound way to receive an independent review of all applicable aspects of Form ADV and related disclosure requirements.

Customized/Bundled Compliance Solutions – Diazo Program

BRC offers bundled compliance services that enable investment advisers to customize products and services that fit their programs targeted areas, while keeping each client’s budgets in mind. The services offered through our Diazo Program have the effect of adding experienced compliance professionals to your adviser’s compliance staff, without the related staffing expenses of full-time hires. Our Diazo Program packages can be modified in duration to fit your organization’s specific needs and can be implemented based upon risk parameters to accommodate your budget. You can select from any combination of BRC’s adviser services to establish your own personalized solution. If unsure of the most beneficial services to select based upon the risks of your organizations business activities, BRC can incorporate a risk based review service upon inception of our relationship in order to provide targeted recommendations concerning the services that would address the areas of your compliance program requiring further enhancement.

Marketing and Advertising Review Services

BRC’s consultants understand that Marketing and Advertising, including performance reporting requires finding the right balance or content and disclosure. It appears that marketing related deficiencies remain a common SEC examination finding as well. Have BRC’s highly proficient consultants work alongside your Sales Team and Compliance Staff to find the precise balance appropriate for your marketing efforts. Whether it is part of an annual compliance review, or as part of a targeted compliance review, BRC’s marketing and advertising review services provide the experience you need on your side to effectively navigate through the array of Rules and Regulatory guidance related to marketing and advertising, including SEC “No-Action Letters”.