SEC Rule 206(4)-7

Under SEC Rule 206(4)-7 and related SEC guidance, firms must:

• Maintain compliance controls designed to prevent and detect violations of securities laws and regulations.
• Establish supervisory policies and procedures for all business communications with clients, including:
  • identifying and addressing compliance risks in electronic communications; and
  • restricting communications that cannot be adequately monitored or retained.
• Protect the privacy and confidentiality of client information and records.
• Review disclosures to clients, investors, and regulators, including account statements and advertisements, to help ensure they are accurate.
• Maintain required records accurately and securely, protecting them from unauthorized access, alteration, or premature destruction.
• Review their written compliance policies and procedures at least annually.
• Designate a Chief Compliance Officer (CCO) to oversee the firm’s compliance program.
• Conduct and document an annual compliance review.