A document reporting to stockholders on management and operations and containing fiscal information, published yearly by a publicly held corporation as required by federal law.
Every investment adviser registered under section 203 of the Investment Advisers Act of 1940 (15 U.S.C. 80b-3) is required by the SEC Rule 206(4)-7 to annually conduct a review of the firm’s compliance program. The compliance review requires the Chief Compliance Officer (CCO) to thoroughly test the adequacy and effectiveness of the advisory firm’s holistic compliance program, in order to find and address potential weaknesses and minimize the risk of compliance deficiencies. Your annual review should address your unique business practices, testing the effectiveness of your policies and procedures in managing and mitigating the specific risks your firm faces. Your annual review documentation should be a culmination of all the various transactional, periodic and forensic testing you have completed throughout the year.
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