Washington D.C., partner Mark Costley was quoted in Gatekeeper IQ on the Securities and Exchange Commission’s (SEC) increased scrutiny of home office due diligence processes. At the annual Finra conference in May, the SEC said it is looking “a lot more closely” during its risk-based examinations of distributors.
The net effect could be higher hurdles and longer waiting times for manufacturers looking to get new products on distributors’ platforms.
Mark, a partner in the firm's Investment Management Group, noted this may be especially true for lesser-known firms or those trying to get new or less conventional strategies onto platforms.
He also commented on the role asset managers can play in helping firms carry out due diligence and how advisers might respond to avoid falling afoul of new rules.