NASAA, the North American Securities Administrators Association, reported this week on common deficiencies identified by state securities regulators when conducting examinations of RIA firms subject to state regulation. An overview of their findings can be found in this release, and their presentation slides can be found at this link.
The findings are based on exams of 1,130 advisers by 44 different jurisdictions in the US and Canada, and report deficiencies in books and records, financials, fees, advertising, supervision and compliance, as well as other categories. NASAA also provides several suggested best practices to help RIA firms ensure that they are operating in compliance with applicable statutes and regulations. These items are worth a review by all compliance and operational management folks with an RIA firm.