On Wednesday, the New Jersey Bureau of Securities within the Division of Consumer Affairs announced the release of the Annual Investment Adviser Examination.
As part of its task to regulate New Jersey’s securities industry, the Bureau uses the examination as a risk assessment tool for the almost 900 registered investment adviser firms around the state.
Platkin
“The annual examination is a critical part of investor protection. It helps the Bureau proactively identify and address potentially problematic practices before investors are harmed,” said acting Attorney General Matthew Platkin. “New Jersey’s Uniform Securities Law and related regulations permit the Bureau to conduct both routine and for-cause examinations of investment advisers, as well as broker-dealers.”
The examination requires firms to provide responses to questions about their business activities, including portfolio composition, compliance with regulatory requirements, and customer complaints. Each year, the Bureau updates the questions to reflect changes in its examination priorities and in the investment adviser industry.
“The examination helps the Bureau track emerging trends in the securities market, assess risk to investors, and ensure compliance with securities law and industry standards,” said acting Consumer Affairs Director Cari Fais. “It is a key tool in the Bureau’s efforts to protect investors.”
Non-fungible tokens, or NFTs, are an example of an emerging trend included in the questions on this year’s examination.
“Required policies and procedures aid in the prevention and detection of Securities Law violations, benefitting both large and small investment advisers,” said acting Bureau Chief Amy Kopleton. “When reasonably implemented, they provide guidance and help firms align with industry best practices.”
The examination can be found on the Bureau’s website at www.NJSecurities.gov.
