Model compliance: Avoiding the hard‐knocks life so the sun will Come out tomorrow

Abstract

The October 5, 2004 deadline for complying with Rule 206(4)‐7 under the Investment Advisers Act of 1940 has come and gone and it’s a whole new world for compliance with rules, regulations, and regulator expectations. Much has changed with regard to compliance in our industry over the past several years ‐ and still more remains to be interpreted, digested, and put into place before the dust can settle. One thing is clear: there is no such thing as business as usual, nor should we expect that any time soon. The fundamental concern at this point in time lies in how SEC Rule 38a‐1 should be ‐ and will be ‐ enforced throughout the industry. If history is any teacher, the next several years undoubtedly will feature clarifications and guidance from regulators that will help fund companies succeed in adhering to the rule’s requirements. While those of us directly involved in day‐to‐day compliance are experiencing rapid change at unprecedented levels, this is not the first time in our history that such sweeping changes have been prevalent.

Citation

Hurley, L. (2004), "Model compliance: Avoiding the hard‐knocks life so the sun will Come out tomorrow", Journal of Investment Compliance, Vol. 5 No. 3, pp. 42-45. https://doi.org/10.1108/15285810410636488