Articles Tagged with “regulatory compliance”

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Regulatory compliance can be an important topic when it comes to business planning. Most California business owners know just how important it is to follow regulatory compliance guidelines in order to avoid potential penalties from governing bodies like the U.S. Securities and Exchange Commission. Sometimes, however, SEC penalties might have a less devastating effect than an unhappy client who leaves–and makes that exit well-known to other clients.

Some investment advisers know this fact all too well. While many focus on the obvious threat of Washington regulators who can make their business lives a lot more difficult in the wake of perceived regulatory noncompliance, the truth is that one dissatisfied custodian for a client can sometimes do far more monetary damage than simple governmental penalties. In a situation where a brokerage firm who acts as the custodian of a client’s securities and sees what they think are too many red flags, the consequences to that adviser could be devastating.
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