On August 12, 2020, the Office of Compliance Inspections and Examinations issued a risk alert related to COVID-19 compliance risks (“Risk Alert”).[1] The Risk Alert applies to both investment advisers and broker-dealers and highlights six categories of compliance risk:
- Protection of investors' assets;
- Supervision of personnel;
- Practices relating to fees, expenses, and financial transactions;
- Investment fraud;
- Business continuity; and
- Protection of investor and other sensitive information.