In the advisory industry, a firm’s assets under management (AUM) can be considered a measure of its success (i.e., more is better). But firms run into regulatory trouble if they aren’t correctly calculating AUM. In a post at his Nerd’s Eye View blog, Michael Kitces explains why a proper determination is important, how to determine whether a firm’s assets count as AUM or assets under advisement (AUA), and describes some common mistakes made in calculations. See the link below. Also, Financial Planning provides a listing of 10 significant Finra and SEC exam priorities, ranging from suitability to robo services. The list was compiled from a blog post by Todd Cipperman of Cipperman Compliance Services.
Calculating Accurate Regulatory AUM Vs Reporting Assets Under Advisement (AUA)
By Michael Kitces
Source: Nerd’s Eye View blog
In today’s increasingly competitive landscape for advisory firms, financial advisors are looking for any way they can to differentiate. Whether it’s their experience and credentials, specialization or depth of services, or simply the sheer size of the firm, based on its assets under management. After all, the reality is that – justified or not – a sizable reported AUM does imply a certain level of credibility and represents a form of social proof (the firm “must” be good, or it wouldn’t have gotten so much AUM, right!?).
The 10 most significant FINRA and SEC exam priorities
By Todd Cipperman and Tobias Salinger
Source: Financial Planning
Advisers need not wait for a warning call from OCIE to prepare their firms for an examination — regulators have already offered a hint about their enforcement priorities. In what some might call an early heads up, the SEC and FINRA in January issued annual guidance to the firms they regulate, according to a blog by Todd Cipperman of Wayne, Pennsylvania-based Cipperman Compliance Services.