Lawyer Monthly Magazine - September 2021 Edition

WWW.LAWYER-MONTHLY.COM | SEP 2021 72 THOUGHT LEADER - EUGENIE WARNER Three Tips on: Emerging Investment Advisory and Wealth Management Firms Emerging investment advisory and wealth management firms often find themselves in a challenging position — on their “compliance heels” — when they begin operations or first become registered with the Securities and Exchange Commission. Below, Eugenie Warner discusses the obstacles facing these start-ups and offers three tips to help them add value for clients while meeting ever-greater regulatory demands. What regulatory issues are commonly encountered by new firms in the wealth management and investment advisory sector? All wealth management and investment advisory firms face regulatory issues at all stages of growth. That is the nature of existing and growing as a regulated entity. That said, it is critical for new firms to assess and fulfill the regulatory requirements right out of the gate. Two regulatory issues stand out in the beginning: disclosures and advertising. For example, for private fund managers, those initial fund documents must have comprehensive and detailed disclosures so that, prior to the time of investment, the dual audience of investors and regulators can assess and understand material terms, including, for example, fees, expenses and co-investment rights and obligations. Regarding advertising,