Where, When and How to Make a Disciplinary Disclosure in Regulatory Filings

Investment advisory firms and related individuals provide “disciplinary disclosures” to the public and the regulators though registration and reporting filings, which include for example and as applicable, Form ADV Parts 1A, 2A, and 2B, and Forms U4 and U5. Firms and individuals have respective obligations to correctly answer all questions on the registration and reporting documents and, at times beyond that, as fiduciaries to “make full disclosure to clients of all material facts relating to the advisory relationship.” However, not every disciplinary or legal situation requires a “disciplinary disclosure,” and some firms and individuals prefer not to disclose where not mandated by the question or fiduciary principles. We provide some insight below and remind firms and individuals to promptly analyze and understand “disciplinary disclosure” obligations whenever one becomes the subject of or connected to a complaint, investigation, examination, arbitration, proceeding, or the like.

Fill in the form below

Loading form...

Cart

Latest Content

Advertising Issues: SEC and GIPS Performance in the Private Fund Space

Over a year ago, OCIE released the Risk Alert, “The Most Frequent Advertising Rule Compliance Issues Identified in OCIE Examinations of Investment Advisers.” While the alert highlighted several areas where performance advertising is involved, our recent CSS/Ascendant conference panelists in a session entitled “Best Practices for SEC and GIPS Performance in the Private Fund Space” … Continued

Placing Ethics and Compliance in the Foreground of Business Decision-Making

Thinking about how to make ethics and compliance part of a business’s decision-making can prove to be challenging. By nature, compliance professionals are often results-oriented, focusing on a binary end-result; either you are in compliance, or you are not. That focus is important, but emphasizing process is also vital, John Walsh, Partner at Eversheds Sutherland … Continued

What Am I Looking At? Making Sense of Your Cyber Testing Reports

It’s no surprise that Compliance and IT do not speak the same language. Compliance staff often speak in terms of regulations and policies, whereas bits and bytes are the language of IT staff. This distinction is clear when it comes to cybersecurity risk management, as the compliance and IT audiences are looking for different takeaways … Continued

It Takes a Village – Preparing for a Regulatory Exam

Advanced planning for a regulatory exam remains a vital step in ensuring the compliance team is prepared when the exam teams comes knocking. At the recent Ascendant/CSS fall conference in San Diego, Allison Fraser moderated the conference’s capstone session on the topic, joined by Bryan Bennett, the Associate Regional Director in the examination program in … Continued

Mailing List

Subscribe to the Ascendant Compliance email list for the latest compliance resources, conferences, ComplianceCasts™, and more.

Loading form...

Contact Us

Ascendant works together with clients to identify and assess critical needs through customized plans. If you need assistance with compliance functions, regulatory services, cybersecurity or technology tools, we’d love to speak with you.