Additionally, advisors need to understand whether a crypto asset is a security offering and, if so, whether it should be registered under the Securities Act of 1933. RIAs and fund managers need to avoid investing client assets in unregistered offerings because such offerings have a heightened risk of fraud or may be subject to SEC enforcement actions.
Other areas that can trip up product sponsors include anti-money laundering regulation and cybersecurity requirements needed to protect assets. All these regulatory issues need to be considered before developing and launching a product or investing client assets in cryptocurrencies and other digital assets.
The Institute for Innovation Development is an educational and business development catalyst for growth-oriented financial advisors and financial services firms determined to lead their businesses in an operating environment of accelerating business and cultural change. We position our members with the necessary ongoing innovation resources and best practices to drive and facilitate their next-generation growth, differentiation and unique community engagement strategies. The institute was launched with the support and foresight of our founding sponsors—Ultimus Fund Solutions, NASDAQ, FLX Networks, Pershing, Fidelity, Voya Financial, Advisorpedia and Charter Financial Publishing (publisher of Financial Advisor magazine).