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How Registered Investment Advisers Can Comply With the SEC Proposed Outsourcing Rule
This blog post was written in collaboration between Hilary Jewhurst, at Venminder, and Mike Morris at Wipfli, who is a consulting firm with services that range from audit and accounting to digital transformation and managing disruption.
Although outsourcing isn’t new, it has become more widespread and complex. And while many registered investment advisors (RIAs) must outsource to remain competitive, it’s crucial to identify and mitigate the risks associated with outsourcing. According to the Securities and Exchange Commission (SEC), if an advisor outsources specific functions without taking proper steps to ensure the protection of their clients’ interests, it may be considered deceptive and not in line with their legal obligations under federal securities laws.