SEC Proposed Vendor Due Diligence Rule
Blake Bjordahl
Compliance Technology Expert & RIA Consultant
On October 26, 2022, the Securities and Exchange Commission proposed new oversight requirements for certain services outsourced by Investment Advisers. https://www.sec.gov/news/press-release/2022-194
The new rule proposal would prohibit registered investment advisers from outsourcing certain services and functions without conducting due diligence and monitoring of said service providers.
The outsourcing focus is on areas such as:
Outsourced Compliance ConsultingOutsourced Chief Compliance OfficersInvestment GuidelinesPortfolio ManagementInvestment ModelingIndexesTrading ServicesSoftware
The new rule proposal would require initial and ongoing due diligence, maintaining books and records (documentation) relating to your due diligence, disclosing on your form ADV about certain service providers, and more.
Our Solution: Simple Vendor Due Diligence
Our Simple Compliance Portal already contains a Simple Vendor Due Diligence form to collect and document your vendor due diligence along with many other compliance forms for documenting your compliance program.
Do you have a solution for documenting your due diligence vendor reviews? If not, schedule a call with us to discuss options on how we can help you check this task off your compliance calendar.
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Blake Bjordahl
Compliance Technology Expert & RIA Consultant
Blake specializes in helping RIAs implement cost-effective compliance solutions. With extensive experience in regulatory technology, he focuses on making compliance simple and automated for investment advisory firms.
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