Core Compliance & Legal Services, Inc.

🚨 Regulatory Update for Broker-Dealers 🚨 The SEC has adopted key amendments to Rule 15c3-3 (Customer Protection Rule) and Rule 15c3-1 (Net Capital Rule). Changes include: 🔹 Requiring certain broker-dealers to Increase the frequency of performing computations of the net cash owed to customers and other broker-dealers from weekly to daily 🔹 Reducing the required 3 percent “buffer” in the customer reserve bank account by reducing the customer-related receivables, or “aggregate debit items,” charge from 3 percent to 2 percent in the computation These updates aim to strengthen customer protections, align with evolving markets, and enhance trust in financial systems. The amendments apply to broker-dealers with total credits of $500M+ and take effect on December 31, 2025. Learn more: https://hubs.li/Q0312mD40 #SEC #RegulatoryUpdate #BrokerDealers

The team at Core Compliance wishes you and yours a very Happy Holiday Season!

🔒 Understanding Recent Amendments to Regulation S-P 🔒 The SEC’s Regulation S-P, designed to safeguard sensitive consumer information, recently received a significant update to address modern cybersecurity risks. Key compliance steps include: ✅ Developing clear policies and procedures. ✅ Implementing incident response plans. ✅ Overseeing service providers’ data protection measures. ✅ Maintaining detailed records for audits. Stay proactive, compliant, and ready. 👉 Dive into the full details in our latest Risk Management Update: https://hubs.li/Q030bvvV0 #DataPrivacy #Cybersecurity #Compliance #InvestmentAdvisers

🔍 Transparency in Executive Compensation: A Cautionary Tale The SEC recently charged Express, Inc. for failing to disclose nearly $1 million in perks and personal benefits provided to its former CEO over three fiscal years. These undisclosed benefits, including personal use of chartered aircraft, resulted in a 94% understatement of the CEO’s "All Other Compensation." While the SEC acknowledged Express’s self-reporting, cooperation, and remedial efforts by declining to impose a civil penalty, this case underscores the critical importance of accurate executive compensation disclosures for public companies. 💡 Key Takeaway for Compliance Professionals: Ensure rigorous internal controls and disclosure processes to avoid regulatory scrutiny and uphold investor trust. Head to the SEC Press Release to learn more: https://hubs.li/Q02_XKDN0 #SEC #Compliance #ExecutiveCompensation #Disclosure #CorporateGovernance

SEC Takes Action Against Cherry-Picking Misconduct The SEC recently charged a former representative of SeaCrest Wealth Management with engaging in a cherry-picking scheme, allocating profitable trades to his own accounts while assigning unprofitable trades to client accounts. This misconduct highlights the risks clients face when firms fail to enforce robust compliance practices. SeaCrest, a New York-based firm with representatives across the U.S., settled related charges for failing to supervise and implement adequate policies and procedures, resulting in a $375,000 penalty. This case underscores critical lessons for advisory firms: 👉 Ensure compliance programs are strong, especially in decentralized environments. 👉 Supervise representatives effectively to prevent misconduct. 👉 Regularly review trade allocation practices to identify red flags. As regulators focus on safeguarding investors, compliance programs remain your best defense. Head to the full SEC Press Release to learn more:https://hubs.li/Q02_BGsz0 #Compliance #SEC #EthicsInAdvising #RegulatoryUpdates #InvestmentAdvisors

🎉New Year, New Compliance Goals! 🎉 We’re excited to share that Core Compliance’s latest article, “2024 Year-End Checklist: Compliance Preparation for Investment Advisers,” has been featured in the November 2024 issue of the NSCP Currents Newsletter! This comprehensive guide equips Chief Compliance Officers with actionable steps to close out 2024 on a high note and gear up for a successful 2025. 📄 Don’t miss out on this must-read resource! 👉 Click here to read the article. https://hubs.li/Q02_fFct0 #ComplianceMatters #NSCPCurrents #InvestmentAdvisers #YearEndChecklist #CoreCompliance

SEC Updates PAUSE List to Protect Investors from Fraudulent Firms The SEC has updated its Public Alert: Unregistered Soliciting Entities (PAUSE) list, adding 14 soliciting entities, 2 impersonators of legitimate firms, and 4 fake regulators. This list helps investors identify unregistered entities that use misleading information to solicit primarily non-U.S. investors. 💡 Tips to Protect Yourself: - Be skeptical of unsolicited investment promotions, especially online or via social media. - Verify credentials—check the SEC’s website to confirm if a firm is registered. - Know the red flags of investment fraud. - Learn how to protect your personal and financial information from scammers. 📌 Stay informed. Stay vigilant. Protecting your financial future starts with understanding the risks. Head to the SEC's updated PAUSE list to learn more: https://hubs.ly/Q02-KlyS0 #SEC #compliance #investorprotection #fraud

💼 SEC 2025 Exam Priorities: Important Takeaways The SEC’s new exam priorities are a reminder for investment advisers to evaluate their compliance efforts. Head to our latest Risk Management Update to learn about key areas of focus outlined in the priorities, including: ✅ Advice on complex and high-cost investments ✅ Addressing conflicts of interest and fee transparency ✅ Oversight of remote workers and AI integration ✅ Compliance with evolving regulations for private funds A strong compliance program isn’t just necessary—it’s your firm’s best defense. Head to the article to learn more: https://hubs.li/Q02-hf9z0 #SECCompliance #InvestmentAdvisers #Regulations #CoreCompliance

This season, we’re reminded of all the reasons we’re grateful—especially for our incredible clients, partners, and colleagues who inspire us every day. Your trust, collaboration, and shared commitment to excellence make everything we do possible. Wishing you and your loved ones a warm, joyful, and safe Thanksgiving filled with gratitude and celebration. Here’s to a bright holiday season and continued success together! 🦃🍂 #Thanksgiving #Gratitude #ThankYou

🚨 2025 SEC Exam Priorities: What Investment Advisers Need to Know 🚨 The SEC’s 2025 Exam Priorities list is here, and our latest Risk Management Update takes a look at this roadmap for assessing and strengthening your compliance program. With a focus on fiduciary duties, compliance programs, and private fund oversight, the SEC is sharpening its lens on areas like: ✅ Investment advice on complex products and high-cost strategies ✅ Conflicts of interest and fee transparency ✅ Oversight of independent contractors and AI integration in advisory operations ✅ Compliance with recently adopted regulations for private funds To stay ahead, firms must ensure their compliance programs are robust, dynamic, and well-documented. From annual reviews to risk assessments, the time to act is now. 💡 Head to the full article to learn more: https://hubs.li/Q02YJXsn0 #SEC #Compliance #InvestmentAdvisers #Regulations