Download 2005 IA SWEEP REPORT FORM

2011 IA COORDINATED EXAM REPORT FORM
State:
Exam Number:
# of IA Reps:
SEC Switch Firm?
Are IA Reps also BD reps?
# of individual accounts:
Firm’s 1st State Exam?
Act as Solicitors?
Pay Solicitors?
Assets under management
Does IA advise or manage PIVs (hedge funds)?
Does IA have Financial Planning Only clients?
Manage Hedge Funds Only (No other IA clients)?
If Yes, how many FP Only clients?
BOOKS AND RECORDS
No/missing complaint-litigation file
No/incomplete journals-ledgers
No list of discretionary accounts
No/missing correspondence file
No bills, receipts, invoices
Missing client statements
No/missing advertising file
No cancelled checks, statements
Missing financial plans
Inaccurate corporate books
No third party agreements
No performance supporting docs
Improper location of records
No cash/securities
Inadequate suitability information
No trial balances, fin’l stmts
receipt/disbursement log
Other (describe)
FINANCIAL MATTERS
Poor fin’l condition
Deficient surety bond
Inaccurate financials
No/inaccurate net worth calculation
Deficient net worth
No bank reconciliation
Other (describe)
REGISTRATION
Discretionary disclosure
Inaccurate business description
Unregistered activity – firm
Affiliations disclosure
Inaccurate services provided
Unregistered activity – IAR
Inaccurate assets under mgmt
No initial delivery of disclosure doc
Other inaccurate ADV
Inaccurate fee structure
No annual offer of disclosure doc
Other delivery deficiencies
Inaccurate personnel
ADVISORY FEES
Overcharging/billing errors
Missing/incomplete fee calc
Inconsistent fees with contract
Missing fee invoices
Inconsistent fees with ADV
Different fees for same service
Other
ADVERTISING
Inaccurate website
Misleading ads/correspondence
Improper use of “RIA”
Missing seminar information
Inaccurate business card
Misleading performance ads
Other
PRIVACY
No privacy policy
No initial delivery
Deficient privacy policy
No annual delivery
Other
Use “Other” for additional category deficiencies, comments, or explanations if needed.
1
SUPERVISION
INVESTMENT ACTIVITIES
Activities inconsistent with
No written procedures
Inadequate written procedures
contract/brochure
CLIENT PERFORMANCE
REPORTING (not advertising)
Inaccurate results
Failed to follow procedures
Non-disclosure of soft dollars
Other Supervisory
Unfair allocation of aggregate
trades
Misleading presentation of
results
Other
Other
CUSTODY
Non-disclosed custody
Physical Custody
Non-compliance w/safeguards for:
General Power of Attorney
Inadvertent custody
Signatory-client account(s)
Direct fee deduction
Other
General partner of partnership
Trustee/Executor
Trustee for relative
Explain
SOLICITATION
HEDGE FUNDS
IA did not screen solicitors
Non-disclosure of Fees
No IA – Solicitor agreement
Non-disclosure of Conflicts of Interest
No solicitor disclosure
Registration-Exemption Issues
Non-delivery of ADV by solicitor
Non-Accredited Investor Issues
Other Solicitor Issues
Other Hedge Fund Issues
DISHONEST AND UNETHICAL BUSINESS PRACTICES
Unsuitable Recommendations
Non-authorized Discretion
206(4)-1
Disclosing Client Information
Excessive Trading
Unauthorized Trades
Trading on Unauthorized
Advertising Not in Compliance with
Custody w/o safekeeping
3rd
Party
Instruction
Advisory Contract
No Written Contract
Inadequate Procedure for Use of
Non-Public Information
Performance Fees contrary to Sect
205
Borrowing from Client
No Services
Fraud (explain)
Lending to Client
No Term of Contract
Engaging in Unlawful Conduct
Misrepresentation of Adviser’s
No Fee
Qualifications, Services, or Fees
Misuse of
3rd
Part Reports
No Fee Formula
through another Person
Other Unethical Conduct (explain
No Refund of Pre-paid Fees
Unreasonable fee
No Discretion
Not Disclosing Conflicts of Interest
No Non-assignment
Guaranteeing Results
Hedge Clause
Other Contract Deficiency
Use “Other” for additional category deficiencies, comments, or explanations if needed.
2
FINANCIAL PLANNING ONLY ISSUES
How many client complaints regarding FP services during last two years?
Other FP Only Issues
ADDITIONAL COMMENTS/DEFICIENCIES
Use “Other” for additional category deficiencies, comments, or explanations if needed.
3