Securities Regulation and Corporate Governance


Securities Regulation and Corporate Governance > Posts > The Annual Risk Assessment Requirement for Investment Advisers: Keeping Your Review Current
The Annual Risk Assessment Requirement for Investment Advisers: Keeping Your Review Current
Rule 206(4)-7 under the Investment Advisers Act of 1940 (the "Advisers Act") requires registered investment advisers to adopt and implement written policies and procedures that are reasonably designed to prevent violations of the Advisers Act by the adviser and any of its supervised persons within the meaning of Advisers Act section 202(a)(25).  The adviser's policies and procedures must also be reasonably designed to detect and promptly address any violations that occurred.  Advisers Act Rule 206(4)-7(b) further requires investment advisers to undertake an annual review to determine the adequacy and effectiveness of their procedures in light of internal and external developments affecting the firm.
In her article, "Assessing Your Risk Program: Is Your Review Current?" prepared for the IAA Newsletter, K. Susan Grafton of Gibson Dunn outlines the review protocol and considerations for establishing an effective risk assessment program.
Reprinted with permission from IAA Newsletter (September 2010), © Investment Adviser Association.

 ‭(Hidden)‬ Blog Tools

© Copyright 2019 Gibson, Dunn & Crutcher LLP.
Attorney Advertising. Prior results do not guarantee a similar outcome. All information provided on this site is for informational purposes only, does not constitute legal advice, is not confidential, and does not create an attorney-client relationship. Statements and content posted to this site do not represent the opinion of Gibson Dunn & Crutcher LLP ("Gibson Dunn"). Gibson Dunn makes no representations as to the accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors or omissions therein, nor for any losses, injuries, or damages arising from its display or use.