This must include details such as a firm's name, the regulatory bodies it registers with, states in which advisors can or cannot work, and contact information. Nuances can vary, depending on whether the advisor registers with the U.S. Securities and Exchange Commission or states, or is a broker licensed by the Financial Industry Regulatory Authority (FINRA), said Vasilev, the compliance expert.
2. Are there disclaimers about information that comes from outside sources?
Advisors' websites should make clear when certain information, such as blog posts or news stories, was not written in-house. Point out that outside information may not be accurate, nor is it necessarily endorsed by the firm. Remember, the disclaimer does not release advisors and firms from the obligation to review those details.
3. Does performance information include proper disclosures?
Advisors who advertise the performance of portfolios they manage should show figures that are calculated after subtracting all fees, said Lynch, the compliance consultant. The disclosure may describe the steps used to calculate returns. It should state that past performance does not indicate future results.
4. Do you have regularly scheduled compliance checks of your website?
An advisor's compliance department should check the site at least quarterly to make sure the information is still accurate.
There are many other rules a compliance officer should know about. They include disclaimers for professional designations, types of labels advisors use to convey a certain expertise. Consider hiring a compliance consultant to double check your compliance officer’s work.