COVID-19 Planning Is Top RIA Compliance Concern

While nearly two thirds (64%) of respondents cited COVID-19-related continuity planning as the hottest compliance topic, an overwhelming 88% reported that COVID-19 had caused no material impact to their firm. Eighty-one percent of responding firms reported that all of their employees were working from home.

"That finding is consistent with what we at the IAA have heard from our member firms repeatedly since late March," said IAA President & CEO Karen Barr. "Due to significant testing and advance preparation, most firms were well prepared to operate remotely and serve their clients. And that underscores the most important takeaway from this year's survey — that firms continue to strengthen their compliance programs."

Other top compliance concerns were: cybersecurity (57%); advertising/marketing (25%); conflicts of interest (21%); and ESG/sustainability (14%).

More than half (55%) of responding firms reported conducting a mock SEC exam in the past year, up from 30% in 2019, the survey found.

Sixty-two percent of compliance officers also said they had retail investor clients entitled to receive the new Form CRS, and 41% reported they plan to deliver the form to all of their clients.

The majority of CCOs (60%) also continue to wear more than one hat, with 25% also serving in some legal capacity.

— Check out RIA Firms Have a Human Capital Problem: DeVoe on ThinkAdvisor.