Family Office Insights: The Securities and Exchange Commission’s Scrutiny of Investment Advisers “Off-Channel Communications” – What Family Offices Need to Know

May 2024
Region: Americas
Family offices and their investment teams should be aware that a recent area of compliance emphasis for the Securities and Exchange Commission (SEC) relating to registered investment advisers (RIAs) is the requirement that RIAs retain and store all “off-channel communications.” On April 3, 2024, the SEC brought its first enforcement action against a standalone investment adviser (that is, an investment adviser that is not affiliated with a bank or broker-dealer) for off-channel communication recordkeeping failures.