Cybersecurity continues to be the top compliance worry for registered investment advisors, with 83% citing it as the “hottest” compliance issue and 70% revealing they’ve increased compliance testing for cyber infractions over the past year, according to the Investment Adviser Association’s annual compliance report.
The 2019 Investment Management Compliance Testing Survey, conducted jointly by the IAA and ACA Compliance Group, polled 369 RIAs online in May and also found that the majority of CCOs (66%) continue to wear more than one hat (with 18% also serving in some legal capacity).
Advertising and marketing ranked as the second biggest compliance concern (28%), while data privacy (23%) came in third.
IAA General Counsel Gail Bernstein told ThinkAdvisor in a Wednesday email message that the SEC “is actively working on a proposal to amend the advertising rule,” and that IAA “has engaged with the staff on this important issue. We expect to see a proposal as early as the fall.”
Data privacy regulations in which firms have adopted written policies and procedures for were Regulation S-P (86%) and the Identity Theft Red Flags Rule (68%).