The Importance of Human Oversight in AI Compliance for RIAs Artificial Intelligence (AI) has become a powerful tool in the compliance departments of Registered Investment Advisers (RIAs). Large Language Models (LLMs) and natural language processing algorithms now scan marketing materials, draft Form ADV revisions, monitor employee communications, and analyze new SEC regulations. These technologies deliver remarkable efficiency, turning tasks that once took days into processes

Navigating the Compliance Challenges of the SpaceX IPO for Registered Investment Advisers The financial world is buzzing with excitement as Space Exploration Technologies Corp., better known as SpaceX, prepares for what could be the largest initial public offering (IPO) in history. With an amended prospectus aiming to raise up to $75 billion and a valuation of $1.77 trillion, this IPO (Ticker: SPCX) is attracting intense interest from investors eager to own a piece of Elon Mu

Navigating Model Fees and Net Performance in Investment Advertising Compliance Navigating Model Fees and Net Performance in Investment Advertising Compliance Investment advisers face complex rules when advertising portfolio performance, especially regarding how fees are presented. A key question is whether advisers can show net performance based on actual fees charged historically when the fees expected to be charged to prospective clients are higher. This issue touches on Ru

Navigating Compensation Regulations for Alternative Investments: Do's and Don'ts for RIAs Alternative investments such as private funds, private placements, non-traded REITs, and private credit have become increasingly popular among clients seeking diversification and higher returns. However, these investment types come with complex regulatory challenges, especially when it comes to compensation paid by issuers to Registered Investment Advisers (RIAs). Both the Securities and