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TLS Compliance Module A separate component of the Text Library System is the Compliance Module, developed for those who are Registered Investment Advisors, financial planners who practice under a broker/dealer's RIA, or those who are considering practicing as an investment advisor. (The SEC generally spells it "adviser" although the rest of the world uses "advisor.")
SPECIAL CLIENT LETTERS In a new feature of the TLS Letters screens, there is an area reserved especially for compliance-related letters. These may also be edited. All compliance material produced for a client is automatically posted in the unique TLS Summary of Activity as an additional component of compliance, due diligence and liability risk reduction. QUICK REVIEW AND CUSTOM EDITS Each item in this module of TLS is separately identified on a screen, and may be instantly viewed or printed. As with all other items in TLS each entry may be easily edited, either temporarily or permanently. A number of the administrative forms (which are identified on the screen) should be slightly customized by the Investment Advisor. RECORDS AND CHECKLISTS Of particular value are detailed materials for record keeping. Each of the 17 forms of required records are clearly described, with sample formats where indicted. The module has an excellent discussion of the retention requirements with meaningful suggestions to avoid future liability. PERFORMING YOUR INTERNAL AUDIT The monitoring system for Registered Investment Advisors is controlled by Compliance Checklists. A Master Checklist for the firm and an Individual Checklist may be used to assure that requirements are kept for each client. Each item may be customized for your firm. A master checklist of these records can be used for an internal review in preparation for an SEC or state securities department audit. EVALUATING YOUR CLIENTS To help avoid complaints and litigation there is a self-administered Client Evaluation. The answers indicate the potentially litigious client and how you should deal with that person - continue or terminate the relationship. Dismissal procedures are included. SEC RELEASES and the INVESTMENT ADVISER ACT These items are critical to compliance, but not easily obtained by the practitioner. Even the SEC cannot furnish copies of their official Releases which affect the investment advisor. TLS has reproduced all of them, for the user's retrieval and review. The current version includes 16 such documents, including IA1862 which was released 04/20/00. Understanding Compliance Issues It is hard for a practitioner to see compliance issues from the viewpoint of regulators or plaintiff attorneys. Special files provide a window to these pertinent issues:
Who Are The Authors? The principal author of the Compliance Module is Jeffrey B. Kelvin, JD, LL.M, CLU, ChFC, who is well known in financial circles. Having served as professor of taxation at The American College, he is president of Financial Planners Assistance Corporation, an organization which processes the registration of 3,500 investment advisors and broker/dealers. Kelvin is the author of The Registered Investment Adviser's Guide to Surviving an SEC Audit. The RIA Guide to Insider Trading and Securities Fraud is in its third printing. Kelvin has also addressed the IARFC, ICFP and securities dealers on compliance. The module even includes procedures for how you might access Kelvin's organization if you have a special concern, potential claim or regulatory threat. Administrative forms and software packaging were provided by Edwin P. Morrow, CLU, ChFC, CFP, RFC. Morrow has written and lectured for national conferences of the IAFP, ICFP, IARFC, FPA, American Society and MDRT on the issues of professional liability and risk management for financial planners and life insurance agents engaged in sophisticated practice. As a result of these appearances and articles, he has spoken to hundreds of planners who have related their experiences with incidents involving compliance, audits and real or threatened legal action. ORDERING THE COMPLIANCE MODULE There is not a separate demo for the Compliance Module as there is with TLS. The Compliance Module
is now in its third version and has been in use since 1992.
FINANCIAL PLANNING CONSULTANTS, INC.
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