Post by Venturis Solutions

On June 9, 2026, SEC Examinations Staff published a Risk Alert discussing investment advisers' fiduciary duties vis a vis economic conflicts of interest.   The Risk Alert delineated what examinations unearthed while reviewing compensation arrangements, fee billing practices, and ADV disclosures. Recommendations of cash management programs that incentivized advisers with revenue from custodians that were either not disclosed or were inadequately disclosed. Mutual fund share class selection (a perennial favorite) that, wait for it . . . were not disclosed or were inadequately disclosed. Inconsistency between what firms were saying they were doing with their fee billing practices and what they actually had done (or were still doing). Form ADV deficiencies about all of the above and more. Fees, the lifeblood of RIAs, have been on the Staff's examination priority list every year since 2022 and will continue to be so. Don't get drained of your lifeblood.