Due Diligence

SEC Rule 206 specifies that Investment Advisors must have a compliance program, CCO, and annual audit. As part of this compliance program, the existing FINRA legislation that governs BD's is a good source to identify compliance best practices. By conducting due diligence, investment advisors can exercise controls to assure that they have their client's best interests in mind before entering into all transactions.  Counter-party risk is one of the top items under review by the regulators. 

ACI works with our clients to develop and implement a due diligence program as part of their procedural manual required by SEC Rule 206. ACI provides due diligence in key business areas, including but not limited to:

• Conducting due diligence reviews of outside investment managers, customers, partners, and potential transactions to seek information including investment objectives, employment status, annual income and net worth, and investment experience.

• Developing processes to obtain sufficient customer account records that include information such as customer financial information, discretionary authorization agreement, disclosure documentation, account approval information, etc.

• Examining existing compliance programs, risk management processes, and internal controls to identify deficiencies.

• Providing a due diligence checklist.

• Reviewing documentation including financial information and business plans

To inquire into ACI's Due Diligence services, contact us at info@acisecure.com.