Regulatory & Compliance Prep at Year-End: What Advisory Firms Need to Lock In Before the New Year

Regulatory missteps can undo years of reputation-building. Before the calendar flips, every advisory firm should perform a compliance tune-up. The goal: address issues before regulators or clients notice them.

1. Reconcile your compliance calendar
Confirm that all scheduled filings, continuing-education, and licensing renewals are up to date. Check ADV Part 1 & 2, Form CRS, state registrations, and custodian attestations.

2. Conduct a communication-review sweep
Audit client emails, newsletters, marketing collateral, and social-media posts for consistency with disclosure standards. Document reviews in your compliance log.

3. Verify documentation and archiving
Ensure that client agreements, trade confirmations, disclosures, and data-retention policies meet record-keeping rules. Cloud backups should be encrypted and access controlled.

4. Run a mock audit
Assign your operations lead or compliance consultant to perform a mini audit using SEC/FINRA checklists. This practice uncovers issues before they escalate and trains staff on real-world expectations.

5. Review vendor due-diligence records
Update files confirming vendor cybersecurity and compliance controls, especially tech platforms and custodians. Regulators increasingly expect documented oversight.

Conclusion
A proactive year-end compliance review signals professionalism and reduces regulatory stress throughout the year ahead.

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