Investment Adviser Compliance

Mission Critical Services ("MCS") provides compliance services to registered investment advisers that guarantee results through proven experience. The compliance experts at MCS have developed methodologies that help SEC and state-registered and exempt reporting investment advisers quickly restructure compliance programs that adhere to laws, rules and regulations and improve overall quality of compliance. The following is a list of our service offerings:

  • SEC Form ADV. Under the Investment Advisers Act of 1940 and state laws, a registered investment adviser must file a “truthful” and “correct” SEC Form ADV. MCS professionals will perform a full review of your firm’s organizational structure, potential conflicts of interest, supervisory oversight, investment advisory activities, activities of related persons, regulatory history and compliance practices. We will revise and update the SEC Form ADV of your investment adviser based on such review, and create and maintain a master log summarizing all amendments and other changes to the SEC Form ADV of your adviser. 
  • Compliance Program Design. MCS Compliance Consultants can mitigate your risks by structuring a compliance program to fit your business.
  • Risk Assessment. MCS can conduct a risk assessment and prepare an internal control report that captures the full inventory of compliance risks, a mapping to written policies and procedures, a gap analysis and a risk rating for each compliance risk.
  • Compliance Policies & Procedures. MCS can draft and/or amend compliance policies and procedures to assist your investment adviser in complying with federal or state securities laws (i.e., Investment Advisers Act of 1940, as amended, and the rules thereunder (“Advisers Act”)), Regulation S-P and state securities laws that mirror the Advisers Act). MCS can review compliance reporting and certification forms of your investment adviser for conformity with applicable federal or state securities laws. MCS can create the proper corporate governance reports to demonstrate to regulators adequate supervision.
  • Compliance Testing. MCS can perform compliance monitoring and testing required by the compliance policies and procedures for your investment adviser. MCS can test the internal compliance functions of your investment adviser for adequacy and effectiveness.
  • Annual Compliance Review. MCS can perform the annual compliance review required by Rule 206(4)-7 of the Advisers Act and prepare a report regarding the adequacy of the investment adviser’s code of ethics, compliance policies and procedures and the effectiveness of the implementation of such policies and procedures. 
  • Cybersecurity. MCS can help develop compliance policies and procedures & checklists to update compliance manuals for investment advisers to keep in line with regulatory requirements for protecting personally identifiable information for advisory clients. MCS also conducts staff training and compliance testing with respect to cybersecurity.
  • Compliance Training. MCS can conduct compliance training for investment adviser representatives and other associated persons through on-site visits or via webinars.
  • Best Execution. MCS can hold and/or participate in Best Execution Review Meetings performed by your investment adviser. We can provide qualitative analysis to determine whether your clients are receiving best execution in accordance with SEC requirements and prepare a written best execution report that will satisfy the regulators. 
  • Marketing & Advertisement Reviews. The regulators require retention of each notice, circular and advertisement. MCS can analyze advertising materials (including a company’s website) that will ensure compliance with the advertising standards imposed by the SEC and states. MCS can also draft required and recommended disclosures to accompany advertising and marketing materials to assist your investment adviser in complying with its obligation to provide full and fair disclosure of all material facts.
  • Solicitors. MCS can conduct due diligence of your solicitors, develop a solicitation agreement and create a written disclosure document. MCS can also develop supervisory procedures for the adviser to properly document its oversight of solicitors.
  • Regulatory Examinations. In the event the investment adviser is examined by the SEC, state, or other regulatory authority, MCS can provide on-site assistance serving as a contact for the regulators, participating in calls and meetings, assisting with document requests, as well as drafting responses to deficiency letters and regulatory inquiries.
  • Mock Exams. Our Compliance Consultants are well seasoned professionals with in-depth SEC and state examination knowledge and experience. With that knowledge and experience, MCS can conduct a mock examination of your investment adviser, visit your primary offices, conduct interviews of key personnel and principals, review a sampling of the documents likely to be requested by examiners, and prepare a written report of our findings. We will gather the requested documents, review the documents for completeness and organize these documents in SEC and state examination format.
  • Deficiency Letters. MCS can draft written responses to deficiency letters sent by the SEC or state securities regulators. 
  • IARD Administration. MCS can support all regulatory filings, including amendments to Forms U4 and U5, state notice filings and perform annual investment adviser registration renewals.
  • IAR Analysis. MCS can conduct an analysis of personnel to determine if registration and/or notice filing of IARs are required in the individual states and territories that have jurisdictional authority over your adviser.
  • Email/IM Surveillance. MCS can conduct surveillance reviews of emails and instant messages in accordance with SEC guidelines. 
  • Regulatory Filings. MCS can draft and/or amend required regulatory filings to be submitted to the SEC or state securities regulators, including, but not limited to: SEC Form ADV, Form 13H, Form 13F, Schedule 13D, Schedule 13G, Form 3, Form 4, Form U4, Form U5 and Form D. MCS can review draft versions of filings prepared by third parties for accuracy and completeness prior to filing.
  • Form PF. MCS can create a timeline and key milestones with your service providers (external auditor, fund accountant, administrator, outside counsel, etc.) and obtain all required information and data in order to properly draft and file Form PF. 
  • Watch/Restricted List. MCS can create, maintain and distribute securities watch and restricted lists for your investment adviser.
  • Due Diligence Questionnaires/RFPs. MCS can conduct a compliance review of due diligence questionnaires and requests for proposals completed by your investment adviser for any potential inaccuracies or misrepresentations prior to dissemination.
  • Books & Records. MCS can create and maintain books and records required by the Investment Advisers Act of 1940 and state laws for your investment adviser. 
  • Best Practices. MCS can provide insights regarding best practices used by investment advisers, which will assist your adviser in complying with federal and state securities laws. 
  • Agreements & Contracts. MCS can review agreements/contracts for your investment advisory services to ensure that provisions required by the Investment Advisers Act of 1940 are included or provisions prohibited by the act are excluded.
  • Additional Services: Additional testing, reviews and consulting can be completed by our team on an à la carte basis and rolled into whichever service may best fit your needs, or we can perform a one-time engagement.