Policies and Procedures Development for Registered Investment Advisers
Compliance Policies Built Around How Your Firm Actually Operates
ClearView helps SEC-registered investment advisers develop, review, and update compliance policies and procedures that reflect their actual business activities, regulatory obligations, conflicts, and compliance risks. Our former SEC examiners and exam managers bring an examination-informed perspective to identifying policy gaps, inconsistencies, and areas where written procedures may no longer reflect the firm’s practices.
More Than a Compliance Manual
Effective compliance policies should reflect the adviser’s actual business rather than rely on generic or outdated language. As firms grow, introduce new services, change systems or personnel, encounter new regulatory requirements, or identify issues through testing and annual reviews, their policies and procedures may also need to change.
ClearView approaches policies and procedures as part of the firm’s broader compliance program. We evaluate whether written policies align with the firm’s disclosures, controls, business practices, and regulatory risks and help develop practical procedures that personnel can understand and implement.
A written compliance manual by itself does not establish or guarantee compliance. Policies and procedures are most effective when they accurately reflect the firm’s business and are implemented and tested in practice.
When Policies and Procedures May Need Attention
Policies and procedures are not static. Common circumstances that may warrant a review or update include the following.
Business or Operational Changes
When the firm adds services, products, personnel, systems, investment strategies, clients, or other business activities that may affect its compliance obligations or controls.
Annual Review Findings
When the annual compliance review identifies policies that are incomplete, outdated, inconsistent with practice, or in need of additional procedures or controls.
Compliance Testing
When testing identifies a gap between written policies and how a process is actually performed or documented.
Regulatory Developments
When changes in applicable regulatory requirements or relevant SEC guidance warrant consideration of updates to the compliance program.
Examination or Remediation Issues
When examination findings, internal reviews, or other identified issues require policy enhancements, clearer procedures, or documented remediation. ClearView can also provide support during an SEC examination.
Periodic Manual Review
When existing policies have not been comprehensively reviewed for consistency with the firm’s current business, disclosures, compliance practices, and regulatory risks.
Areas We May Address
Compliance Program Governance
Policies addressing compliance responsibilities, escalation, documentation, oversight, and administration of the firm’s compliance program.
Portfolio Management, Trading, and Best Execution
Policies and procedures addressing portfolio management processes, trading practices, allocations, best execution, client restrictions, and related controls where applicable.
Conflicts of Interest and Disclosures
Policies addressing the identification, disclosure, mitigation, escalation, and management of material conflicts relevant to the firm’s business.
Fees, Expenses, and Valuation
Procedures addressing advisory fee calculations, allocations, valuation practices, expense treatment, and consistency with applicable disclosures and agreements.
Marketing Rule Compliance
Policies and procedures governing advertisements, performance presentations, testimonials, endorsements, third-party ratings, substantiation, review processes, and recordkeeping. See ClearView’s Marketing Rule review services.
Code of Ethics and Personal Trading
Policies addressing Code of Ethics administration, access persons, personal securities transactions, reporting, approvals, and related recordkeeping.
Custody and Client Asset Protection
Policies addressing custody-related practices, identification of custody arrangements, applicable controls, disclosures, and responsibilities where relevant to the firm.
Regulation S-P and Privacy Compliance
Policies and procedures addressing privacy notices, safeguarding and incident-response requirements, service-provider oversight, and related Regulation S-P obligations from a regulatory compliance perspective.
Books and Records
Policies addressing the creation, maintenance, retention, and production of required records and supporting documentation.
Business Continuity and Service-Provider Oversight
Policies addressing business continuity considerations and oversight of relevant service providers based on the firm’s operations and compliance risks.
How ClearView Approaches a Policies and Procedures Engagement
The scope of each engagement is tailored to the firm, but a ClearView policies and procedures engagement generally follows a structured process.
Understand the Firm
Develop an understanding of the adviser’s business model, services, clients, investment activities, personnel, systems, disclosures, conflicts, and existing compliance structure.
Review Existing Policies and Related Materials
Evaluate the current compliance manual and relevant policies, procedures, regulatory disclosures, and other materials within the agreed scope.
Identify Gaps and Inconsistencies
Identify areas where policies may be outdated, incomplete, unclear, inconsistent with disclosures, or not aligned with the firm’s actual practices.
Develop or Update Policies and Procedures
Draft or revise policies and procedures to reflect the firm’s business, regulatory responsibilities, and identified compliance risks.
Support Implementation
Help management and compliance personnel understand significant changes and identify practical implementation, documentation, testing, or follow-up considerations.
What a Policies and Procedures Engagement May Include
Depending on the scope, an engagement may include:
Compliance Manual Review
Assessment of the existing compliance manual for potential gaps, outdated provisions, inconsistencies, and areas that may warrant revision.
New or Revised Policies
Development or revision of policies and procedures within the agreed scope based on the firm’s business and regulatory responsibilities.
Policy-to-Practice Assessment
Evaluation of whether selected written procedures are consistent with how the firm actually conducts and documents relevant activities.
Disclosure Consistency Review
Review of selected policies against relevant regulatory or client disclosures to identify potential inconsistencies requiring further consideration.
Change Summary and Implementation Priorities
Identification of significant policy changes and practical priorities for implementation, communication, documentation, or follow-up.
Testing and Follow-Up Considerations
Identification of areas where future compliance testing or monitoring may be appropriate to evaluate implementation of revised procedures.
Former SEC Examination Experience
ClearView’s team includes former SEC examiners and exam managers with decades of experience conducting, supervising, and managing examinations of investment advisers and evaluating compliance programs.
That experience provides a practical perspective on how examiners evaluate whether written policies are reasonably designed, whether they reflect the adviser’s actual business and risks, and whether the firm is implementing its procedures in practice.
Related ClearView Services
ClearView offers a range of complementary compliance services for registered investment advisers.
Annual Compliance Reviews
Risk-based annual compliance reviews designed to identify compliance risks, gaps, and remediation priorities.
Learn moreMock SEC Examinations
Test the firm’s compliance program, disclosures, controls, and practices before an actual SEC examination.
Learn moreSEC Examination Support
Support during an actual SEC examination, including document production, interviews, responses, potential findings, and remediation.
Learn moreMarketing Rule & Advertising Reviews
Independent review of advertisements, performance presentations, testimonials, endorsements, third-party ratings, and related Marketing Rule compliance practices.
Learn moreOngoing Compliance Support
Ongoing compliance assistance for RIAs, including testing, filings, policy updates, remediation, and support for the firm’s compliance function.
Learn moreRIA Registration & Form ADV Support
Assistance with investment adviser registration, Form ADV filings and amendments, regulatory disclosures, and related filing requirements.
Learn moreDo Your Policies Reflect How Your Firm Operates Today?
Talk with a former SEC examiner or exam manager about reviewing, updating, or developing compliance policies and procedures tailored to your firm’s business and compliance program.