SEC Rule 206(4)-7 requires advisers to conduct an Annual Review to determine whether the firm’s policies & procedures are reasonably designed and implemented to prevent violation of federal securities laws (adequacy testing) and are effectively operating to prevent compliance problems, identify problems that occur and promptly correct those issues – achieving the goals as intended (effectiveness testing).
There are several advantages to engaging Compliance Advisers to conduct your Annual Review–
- Capitalize on Our Many Years of Experience Conducting Annual Reviews
- Achieve Maximum Objectivity to ensure that Deficiencies are Fully Identified and Corrected
- Obtain Broader Insights into the Effectiveness of your Policies and Procedures
- Preserve precious time and resources for other compliance matters
- Cost Effective Means to Meeting this Regulatory Requirement