Hightower Holding, a Chicago-based registered investment advisor, is adding a major institutional investment consultancy to its practice by acquiring the firm in a strategic move to expand its advisory services. The acquisition will allow Hightower to offer a broader range of investment solutions to its clients, further solidifying its position in the market.
In addition to core business practices, examiners will focus on new rules, emerging tech, and investor data protection to ensure compliance with regulatory requirements. The Securities and Exchange Commission's Division of Examinations highlighted an increased focus on dually registered advisors, emphasizing the importance of transparency and accountability in the financial industry.
On March 27, 2024, the Securities and Exchange Commission ('SEC') adopted amendments to the rule allowing internet-based investment advisors to register with the agency, streamlining the registration process and enhancing regulatory oversight. The move is aimed at promoting investor protection and market integrity in the digital age.
The Financial Crimes Enforcement Network (FinCEN) issued a final rule that will impose new anti-money laundering and countering terrorism financing requirements on registered investment advisors, strengthening efforts to combat financial crime and illicit activities in the industry. Compliance with these regulations is crucial for safeguarding the integrity of the financial system.
Since December 2021, the US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have been conducting a joint initiative to enhance oversight of registered investment advisors and ensure compliance with regulatory standards. The collaborative effort underscores the importance of regulatory cooperation in maintaining market integrity.
U.S. Securities and Exchange Commission adopted the “Data Privacy Amendments,” enhancing data protection requirements for registered investment advisors to safeguard client information and prevent unauthorized access. The amendments aim to strengthen cybersecurity measures and mitigate data breaches in the financial sector.
A fiduciary is an advisor who must act in your best interest, prioritizing client welfare over financial incentives. Fiduciaries are bound by ethical standards and legal obligations to ensure that investment recommendations are aligned with the client's goals and interests.
The SEC proposed and ultimately adopted the Rule in August 2023, citing its authority under Section 211(h) and Section 206(4) of the Advisers Act to regulate the conduct of registered investment advisors. The Rule aims to enhance transparency, accountability, and investor protection in the financial advisory industry.
