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What to look for in Advisor Compliance in 2023

Well it’s that time a year again when everybody tries to guess what’s going to be important next year. I’ve always been a bit of a follower, so here’s my guess for the Advisor Compliance world in 2023.

First, because it’s most obvious, crypto. If you are trying to manage a crypto or crypto related fund, expect big changes beyond your AUM.

There’s also been increasing scuttlebutt around the exceptionally underwhelmingly named Books and Records regulation. What has gotten the regulators attention in this section is advisors use of apps to communicate with clients. If it’s in writing, it needs to be kept. However, regulators are finding that with the rapid shift to work from home in 2020 some corners may have been cut or lost in the chaos, and archiving has not been happening.

If that’s the case for your shop, run don’t walk, to your IT guy and start looking to correct the oversight. Those of you who think you’re doing enough already, double check.

Cybersecurity and digital asset protection. This will probably always be on a list, but with ‘tech’ and ‘fraud’ as this season’s buzzwords – thanks Sam Bankman-Fried - expect a closer look in ’23.

Lastly, never forget the most recent changes. With derivative testing becoming mandatory in August and new marketing requirements in November you can anticipate the regulators looking at how you are implementing these new regulations.

Thanks for taking a minute to read my ramblings and let me wish you and yours all that is wonderful this holiday season.


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