Compliance is a strategy that guides firms toward sustainable success. It paves the way for advisors to cultivate trust, inspiring confidence that their recommendations, strategies, and decisions are rooted in ethical practices and adherence to established norms. With increasing regulatory scrutiny and the potential for significant penalties, advisors and firms have to prioritize compliance to protect their clients and businesses.
In this episode, Ryan and George talk with Jeffrey Lang, Investment Management Attorney and Shareholder at Stark & Stark. Jeffrey has over 25 years of regulatory and compliance experience, including SEC, FINRA, and global corporate compliance expertise. He has served as Chief Compliance Officer with large institutional and start-up registered investment advisers. Jeffrey concentrates his practice on all facets of Investment Adviser and Broker-Dealer compliance, managed accounts, oversight of business practices and supervision, and risk assessments.
With extensive experience in successfully navigating clients through regulatory examinations and internal audits, Jeffrey talks with Ryan and George about the changes and trends in the regulatory space, how advisors can best safeguard their firms for the future, and how to build a culture of compliance in a wealth advisory firm.
Key Takeaways
[03:34] - The reasons for the increase in SEC penalties.
[07:50] - Update about the SEC's examinations.
[08:38] - Compliance issues with text communications.
[11:23] - What a culture of compliance is all about.
[13:09] - What Jeffrey considers to be a basic compliance program.
[15:53] - Use of technology in compliance and regulatory obligations.
[19:21] - Potential regulatory requirements for mutual funds, ETFs, and cash balances.
[24:32] - How technology can help advisors fulfill regulatory obligations.
[28:49] - Jeffrey's advice to advisors regarding compliance.
Quotes
[13:56] - "One of the things the SEC is very focused on, and I think this is also foundational, is when I onboard somebody, both the initial and ongoing stages of that relationship, am I investing them in a manner that is consistent with the information they've given me?" ~ Jeffrey Lang
[24:46] - "Technology can help advisors fulfill their regulatory obligations in a variety of ways, from employee compliance to portfolio management to firm documents. And I certainly see, among my client base, greater and greater adoption." ~ Jeffrey Lang
[29:11] - "In today's environment, you want to be proactive rather than reactive. So that's a combination of having the right technology and working with the right third parties or firms to help you." ~ Jeffrey Lang
Links
Jeffrey Lang on LinkedIn
Stark & Stark
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2358-OAT-8/25/2023
