PLANADVISER - November/December 2022 - 6

Legislative and Judicial Actions
compliance news //
SEC Vets Adviser
Outsourced Services
On October 26, the Securities and
Exchange
Commission
proposed
new rules requiring that financialplanning
and wealth-management
advisers vet and monitor vendors to
which they outsource a broad array
of client-related services. According
to the agency, while advisers have
always turned to third-party service
providers, their increased use of them
to lower the costs of doing business
requires increased regulation.
" When
an investment
outsources work to third parties,
adviser
it
may lower the adviser's costs, but it
does not change [the] adviser's core
obligations to its clients, " SEC Chair
Gary Gensler said in a statement.
The rule comes amid the growing
About 32% of registered
investment advisers said they
outsource some services,
up from 27% two years ago ...
incidence of advisers using outsourcing
in their everyday work with clients.
About 32% of registered investment
advisers said they outsource some
services, up from 27% two years ago,
according to a September survey of 550
advisers by FlexShares, a division of
Northern Trust.
The new rule broadly applies to
what the SEC calls " covered functions, "
or outsourced services that could
cause a " material negative impact " on
clients. The regulator also said the rule
applies to services that the adviser
must provide in order to comply with
federal securities law.
Marcia Wagner, founder of The
Wagner Law Group, said the proposal,
which is intended to prevent financial
advisers from taking a " set it and forget
it " approach to outsourcing, could add
work and costs for smaller firms that
previously have not done the kind of
due diligence the SEC now proposes.
6 | planadviser.com November-December 2022
Art by Irene Servillo

http://www.planadviser.com

PLANADVISER - November/December 2022

Table of Contents for the Digital Edition of PLANADVISER - November/December 2022

Built to Last
Cyber Ready
Measure Your Footprint
Determinants of Profitability
Keep a High Profile
Strategic Moves
The Value of a VCOC
Retroactive Compliance Reviews
Sheri Fitts
PLANADVISER - November/December 2022 - Cover1
PLANADVISER - November/December 2022 - Cover2
PLANADVISER - November/December 2022 - 1
PLANADVISER - November/December 2022 - 2
PLANADVISER - November/December 2022 - 3
PLANADVISER - November/December 2022 - 4
PLANADVISER - November/December 2022 - 5
PLANADVISER - November/December 2022 - 6
PLANADVISER - November/December 2022 - 7
PLANADVISER - November/December 2022 - 8
PLANADVISER - November/December 2022 - 9
PLANADVISER - November/December 2022 - 10
PLANADVISER - November/December 2022 - 11
PLANADVISER - November/December 2022 - 12
PLANADVISER - November/December 2022 - 13
PLANADVISER - November/December 2022 - 14
PLANADVISER - November/December 2022 - 15
PLANADVISER - November/December 2022 - Built to Last
PLANADVISER - November/December 2022 - 17
PLANADVISER - November/December 2022 - 18
PLANADVISER - November/December 2022 - 19
PLANADVISER - November/December 2022 - 20
PLANADVISER - November/December 2022 - 21
PLANADVISER - November/December 2022 - Cyber Ready
PLANADVISER - November/December 2022 - 23
PLANADVISER - November/December 2022 - 24
PLANADVISER - November/December 2022 - 25
PLANADVISER - November/December 2022 - Measure Your Footprint
PLANADVISER - November/December 2022 - 27
PLANADVISER - November/December 2022 - 28
PLANADVISER - November/December 2022 - 29
PLANADVISER - November/December 2022 - Determinants of Profitability
PLANADVISER - November/December 2022 - 31
PLANADVISER - November/December 2022 - 32
PLANADVISER - November/December 2022 - 33
PLANADVISER - November/December 2022 - Keep a High Profile
PLANADVISER - November/December 2022 - 35
PLANADVISER - November/December 2022 - Strategic Moves
PLANADVISER - November/December 2022 - 37
PLANADVISER - November/December 2022 - The Value of a VCOC
PLANADVISER - November/December 2022 - Retroactive Compliance Reviews
PLANADVISER - November/December 2022 - Sheri Fitts
PLANADVISER - November/December 2022 - Cover3
PLANADVISER - November/December 2022 - Cover4
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