1. Code of Ethics:
RIAs must establish a Code of Ethics outlining expected behavior and conflicts of interest, with provisions for reporting violations.
2. Compliance Policies and Procedures Manual:
Develop a comprehensive manual that details the RIA's compliance policies and procedures, providing guidance for employees.
3. Annual Compliance Review:
Conduct an annual review to assess the effectiveness of compliance programs and identify any necessary updates.
4. Disclosure Documents:
Create and maintain accurate disclosure documents, such as Form ADV, that provide clients with essential information about the RIA's services and fees.
5. Custody of Client Funds and Securities:
Establish protocols for handling and safeguarding client assets to prevent unauthorized access or misappropriation.
6. Best Execution:
Ensure that trades are executed in the best interest of clients, considering factors like price, speed, and likelihood of execution.
7. Advertising and Marketing Materials:
Review and approve all promotional materials to ensure they are not misleading and comply with regulatory guidelines.
8. Privacy Policies and Procedures:
Protect client information by implementing policies and procedures for data security and privacy in line with applicable laws.
9. Business Continuity Plan:
Develop a plan to ensure business operations can continue during emergencies, minimizing disruptions to clients.
10. Anti-Money Laundering (AML) Program:
Establish AML policies and procedures to detect and report suspicious activities, complying with relevant laws.
11. Cybersecurity Policies:
Protect client data and sensitive information by implementing robust cybersecurity measures and regularly updating them.
12. Recordkeeping and Reporting:
Maintain accurate records of client transactions and communications, and submit required reports to regulatory authorities.
