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Understanding Registered Investment Companies and Advisors

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Learn about the regulations, requirements, and options for investing with registered investment companies and advisors.

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Registered investment companies (RICs) are organizations that manage pools of money from investors, using that money to buy securities such as stocks, bonds, and other assets. These companies are regulated by the Securities and Exchange Commission (SEC) and must adhere to strict rules and guidelines in order to protect investors and maintain transparency.

One of the main benefits of investing with a registered investment company is the ability to diversify your investments without having to buy individual stocks or bonds. RICs are typically managed by experienced professionals who use a variety of investment strategies to help grow the fund's assets over time.

To become a registered investment advisor (RIA) requires specific licensing, qualifications, and regulations, but the greater freedom may be worth it for those looking to provide personalized advice to clients. RIAs are held to a fiduciary standard, meaning they must act in their clients' best interests and disclose any conflicts of interest.

Registered investment companies' disclosures on ESG-related funds will be scrutinized by the SEC for accuracy. Environmental, social, and governance (ESG) investing has become increasingly popular in recent years, with investors looking to align their investments with their values. However, there is a concern that some companies may be misleading investors with false or incomplete information about their ESG practices.

The SEC recently adopted rule and form amendments for mutual funds and exchange-traded funds registered. The amendments are intended to modernize the regulatory framework for these funds and improve transparency for investors. Key changes include requiring funds to provide more detailed information about their holdings, risk management practices, and investment strategies.

SEC Rules and Amendments - Liquidity Rule Amendments: Interval Funds to the Rescue? On November 2, 2022, the Securities and Exchange Commission (SEC) adopted amendments to its liquidity risk management program requirements for open-end funds. The amendments are intended to improve the effectiveness of liquidity risk management programs and reduce the risk of investor runs.

On Feb. 7, 2023, the Division of Examinations of the Securities and Exchange Commission (the “Division” of the “SEC”) published its list of examination priorities for the year. The Division will focus on issues related to climate and ESG risk, cybersecurity, and investor protection, among other areas.

Download PDF Download PDF file. Covering legal developments and regulatory news for funds, their advisers, and industry participants for the... This PDF provides a comprehensive overview of the latest legal and regulatory developments in the world of registered investment companies and advisors.

The Fifth Circuit Court of Appeals recently affirmed the dismissal of a shareholder derivative suit filed against the manager and trustees... This case highlights the importance of due diligence when investing in RICs. Investors should carefully review the company's management team, investment strategies, and track record before making any decisions.

CONTI Capital, a real estate investment company, is pleased to announce its designation as an independent Registered Investment Advisor. This announcement highlights the growing trend of RICs specializing in niche areas such as real estate, private equity, and other alternative investments.

Wondering how to choose a financial advisor? Here's a look at the types of financial advisors, plus our four-step guide to picking the best... Choosing the right financial advisor is crucial for achieving your investment goals. This article provides a helpful guide for understanding the different types of advisors and selecting the one that's right for you.

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