Corporate compliance for investment firms

Research completed: I ran parallel web searches for comprehensive, up-to-date guidance (through 2026-01-03) on corporate compliance for investment firms (investment advisers, private fund managers, broker-dealers) covering federal rules (SEC, FINRA), BSA/AML/FinCEN, state securities/blue-sky issues, state privacy/cybersecurity laws, and practical compliance program elements.

I captured authoritative sources (SEC rule release on compliance programs; FINRA checklists; FinCEN/AML guidance summary; guidance on SEC vs state registration thresholds and de minimis rules; RIA compliance checklists; and articles summarizing Form ADV, Form PF, Form D, state blue-sky filings and registration triggers).

Below is a consolidated summary of the key, research-backed points necessary to draft the requested comprehensive blog post and state-level guidance for US businesses. Key findings and guidance to include in the blog post: 1) Federal compliance framework and must-have program elements: - SEC rules require registered investment advisers and funds to adopt and implement written policies and procedures designed to prevent violations of the federal securities laws, perform an annual review of policies and procedures, designate a single Chief Compliance Officer (CCO), and maintain required books and records (see SEC adoption of Rule 206(4)-7 and Rule 38a-1). - Core topics to address in written policies: portfolio management, trading practices and best execution, personal trading/code of ethics, accuracy of disclosures, safeguarding client assets, recordkeeping, marketing/advertising (SEC Marketing Rule), valuation, privacy/regulation S-P, and business continuity planning. - Form ADV (Part 1 and 2) filing requirements and annual/amendment obligations; Form PF for private fund reporting where applicable; custody rules and surprise audits where custody applies. 2) AML/BSA and FinCEN: - New FinCEN final rule extends AML/CFT requirements to investment advisers effective January 1, 2026; RIAs must establish risk-based AML programs, suspicious activity reporting processes, and customer due diligence.

Research completed: I ran parallel web searches for comprehensive, up-to-date guidance (through 2026-01-03) on corporate compliance for investment firms (investment advisers, private fund managers, broker-dealers) covering federal rules (SEC, FINRA), BSA/AML/FinCEN, state securities/blue-sky issues, state privacy/cybersecurity laws, and practical compliance program elements.

I captured authoritative sources (SEC rule release on compliance programs; FINRA checklists; FinCEN/AML guidance summary; guidance on SEC vs state registration thresholds and de minimis rules; RIA compliance checklists; and articles summarizing Form ADV, Form PF, Form D, state blue-sky filings and registration triggers).

Below is a consolidated summary of the key, research-backed points necessary to draft the requested comprehensive blog post and state-level guidance for US businesses. Key findings and guidance to include in the blog post: 1) Federal compliance framework and must-have program elements: - SEC rules require registered investment advisers and funds to adopt and implement written policies and procedures designed to prevent violations of the federal securities laws, perform an annual review of policies and procedures, designate a single Chief Compliance Officer (CCO), and maintain required books and records (see SEC adoption of Rule 206(4)-7 and Rule 38a-1).

- Form ADV (Part 1 and 2) filing requirements and annual/amendment obligations; Form PF for private fund reporting where applicable; custody rules and surprise audits where custody applies. 2) AML/BSA and FinCEN: - New FinCEN final rule extends AML/CFT requirements to investment advisers effective January 1, 2026; RIAs must establish risk-based AML programs, suspicious activity reporting processes, and customer due diligence.

• Core topics to address in written policies: portfolio management, trading practices and best execution, personal trading/code of ethics, accuracy of disclosures, safeguarding client assets, recordkeeping, marketing/advertising (SEC Marketing Rule), valuation, privacy/regulation S-P, and business continuity planning.

Broker-dealers and FINRA

- Broker-dealer firms must follow FINRA rules (including Reg BI and Form CRS obligations where applicable) and FINRA provides checklists (AML templates, cybersecurity checklist, compliance calendar).

State vs Federal registration and state-specific obligations

- SEC registration typically applies to firms with $100M+ RAUM (mandatory above $110M), with various exceptions (firms in 15+ states, certain NY-based firms, internet-only advisers under narrow conditions). State registration applies below the threshold and includes home-state registration plus states where the adviser has clients; many states use a de minimis rule (commonly five or fewer clients), but some states (e.g., Texas, Louisiana) may require registration with just one client and other state variations exist. - State-level requirements can include net worth/bonding, different custody definitions and audit requirements, advertising restrictions (some states still restrict testimonials), IAR registration rules, and blue-sky/Form D filing requirements and renewals.

Privacy, cybersecurity and data protection

- Advisers must comply with Regulation S-P (privacy rules) and apply administrative, technical, and physical safeguards; state privacy laws (e.g., California CPRA, New York SHIELD) and state breach notification laws create additional obligations.

Practical compliance program components and best practices

- Policies and procedures tailored to firm operations; annual compliance review and documentation; designation of a CCO with authority; written code of ethics and insider trading safeguards; AML program (post-2026 FinCEN rule); vendor/outsourcing oversight; business continuity and disaster recovery planning; training programs; monitoring and testing; record retention schedules; SEC/FINRA exam preparation; Form ADV/Part 2B client brochure maintenance; and blue-sky/Form D management.

State-specific operational items for business owners / LLC founders

- Entity formation considerations (choice of state for LLC/corporation), annual reports and franchise taxes (Delaware, California, New York, Texas, Florida differences), state registration and agent requirements, and state-level licensing for investment adviser representatives. Recommended next step: Use these sources to draft the full comprehensive blog post with the following sections: executive summary; federal compliance framework (laws and rules); AML/FinCEN update and implementation checklist; broker-dealer/FINRA considerations; state registration and blue-sky/notice filing guidance (with examples and checklist for common states and de minimis/exceptions noted); privacy/cybersecurity obligations; practical compliance program checklist and templates (Form ADV/ADV amendments, Form PF, Form D blue-sky filing steps); sample compliance calendar and document library; enforcement trends and penalties; and a short state-by-state appendix covering common differences and links to state securities regulators and state corporate filing offices. I am ready to draft the blog content and newsletter copy using these findings. Citations and verbatim excerpts supporting the summary are provided below.