GRC Solutions for Digital Asset Managers
The growth of the digital asset space in recent years has naturally led to the advent of “cryptocurrency hedge funds” and other investment management firms that make digital asset investments on behalf of their clients. As a result, digital assets including cryptocurrencies, initial coin offerings, and other blockchain-focused assets continue to be a focus area for the U.S. Securities and Exchange Commission (SEC) and other regulators.
Our solutions are specifically designed to help firms align their advisory processes with regulatory requirements and the expectations of the SEC and the U.S. Commodity Futures Trading Commission (CFTC).
CONNECT WITH US
Bitcoin and other cryptocurrencies have brought new thinking to payments and financial inclusion, but they’ve also raised new issues of investor protection. If confirmed at the SEC, I will work to promote innovation.
Gary Gensler, SEC Chairman
We provide customized compliance solutions for advisers dedicated to managing digital assets, including cryptocurrencies, initial coin offerings, and other blockchain focused assets.
ACA assists with:
- Preparing and filing Form ADV
- CFTC registration and NFA membership
- Developing customized compliance policies and procedures
- Developing compliance infrastructure
- Implementing customized compliance programs
- Form ADV reviews
- IARD filings with appropriate state and federal regulators
- Private Fund Reporting Depository administration services
- Form PF reasonableness review
- NFA Online Registration System ("ORS") assistance
- Policy and procedure development
- SEC inspection support services
- Marketing and advertising reviews
- Secondment and compliance staffing solutions, from single day to long-term secondments
- On- and off-site assistance with periodic and ongoing compliance tasks and activities
- Focused performance reviews
- Regulatory Reporting Platform
- Cybersecurity and technology risk assessments
- Trade surveillance
- Education and training
We work with asset management firms throughout the world to facilitate compliance and product distribution through legal underwriting, registered rep licensing and chaperoning, and DTCC/NSCC fund sponsorship for all types of pooled investment vehicles.
Digital Asset Securities for Broker-Dealers
Watch our on demand webcast about the regulatory and legal developments surrounding digital asset securities and what broker-dealers should consider if they are thinking about investing in digital assets.
During this webcast, we'll discuss:
- Advances in the use of distributed ledger or blockchain technology for payment and trading of digital asset securities
- Regulatory and legal developments around digital asset securities
- Predictions for the future of digital asset securities in the broker-dealer arena
- Considerations for digital asset investment advisors
Our unique perspective is informed by our real-world experience, deep subject matter expertise, and extensive client network.
With new challenges and risks crypto poses to investors, the U.S. Securities and Exchange Commission endeavors to dedicate more resources to protect market participants from securities law violations related to crypto.
- Cybersecurity Resources
On February 26, 2021, the U.S. Securities and Exchange Commission’s (SEC) Division of Examinations released a Risk Alert highlighting areas of concern found in its examinations of investment advisers and broker-dealers investing and dealing in digital assets that are securities. We believe that these recent Division observations highlight the SEC’s interest in Digital Asset Securities and are a precursor to additional scrutiny in these areas.
The Securities and Exchange Commission’s Division of Investment Management staff released a statement this week concerning registered funds, most notably mutual funds, investing in the Bitcoin futures market. The statement addressed both perceived investor risk when investing in a mutual fund with exposure to the Bitcoin futures market, as well as IM staff’s intended coordination with the Division of Examinations and the Division of Economic and Risk Analysis. Read our summary and analysis of the statement in our compliance alert.