# Financial Services Compliance Prompts — SEC FINRA Regulatory Framework
Financial services firms require specialized compliance frameworks that address SEC regulations, FINRA requirements, and investor protection standards. This guide provides systematic prompts for regulatory compliance, client communication, and risk management in securities and investment advisory contexts.
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## TL;DR Verdict
- **Use Financial Compliance Prompts if:** You're operating investment advisory services, broker-dealers, or securities-related business requiring SEC/FINRA compliance.
- **Use General Business Prompts if:** Your financial services don't involve securities, investment advice, or regulated financial activities.
- **Bottom line:** Securities regulations require specialized expertise that general business prompts cannot safely address.
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## SEC and FINRA Regulatory Framework
### Investment Advisor Compliance (SEC)
**Fiduciary Duty Requirements:**
- Best interest standard and conflict of interest management
- Fee disclosure and reasonableness standards
- Performance reporting accuracy and standardization
- Client privacy protection and information safeguarding
**Registration and Reporting Obligations:**
- Form ADV filing and annual updates
- Client brochure delivery and acknowledgment
- Custody rule compliance and client asset protection
- Recordkeeping requirements and examination readiness
### Broker-Dealer Compliance (FINRA)
**Sales Practice Standards:**
- Suitability and know-your-customer requirements
- Fair dealing and communication standards
- Supervision and compliance monitoring
- Anti-money laundering and customer identification
**Market Conduct Rules:**
- Best execution and order handling
- Research and investment banking conflicts
- Market making and proprietary trading
- Technology and cybersecurity requirements
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## Client Communication Compliance Frameworks
### Investment Advisory Communications
**Client Advisory and Disclosure Requirements:**
```
SEC-compliant investment advisory communications:
Performance reporting standards:
- Time-weighted returns and benchmark comparisons
- Fee impact disclosure and net performance reporting
- Risk factor explanation and volatility measures
- Regulatory compliance statements and disclaimers
Investment recommendation frameworks:
- Fiduciary standard adherence and best interest analysis
- Conflict of interest disclosure and management procedures
- Due diligence documentation and investment rationale
- Client suitability assessment and recommendation justification
Risk disclosure requirements:
- Investment risk factor identification and explanation
- Market volatility and loss potential communication
- Liquidity constraints and redemption limitations
- Regulatory and compliance risk factors
Client relationship documentation:
- Investment policy statement development and updates
- Fee arrangement disclosure and acknowledgment
- Service level agreements and communication preferences
- Complaint procedures and dispute resolution processes
```
### Broker-Dealer Customer Communications
**FINRA Communication Standards:**
```
FINRA-compliant customer communication frameworks:
Sales material and advertising compliance:
- Fair and balanced presentation requirements
- Substantiation and approval procedures
- Risk disclosure and disclaimer requirements
- Target audience appropriateness and distribution controls
Customer account documentation:
- New account opening and suitability information
- Investment objective and risk tolerance assessment
- Financial situation and investment experience evaluation
- Product-specific disclosures and acknowledgments
Transaction-related communications:
- Trade confirmation accuracy and timing requirements
- Account statement completeness and delivery standards
- Margin and option agreement disclosures
- Fee and expense transparency and disclosure
```
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## Regulatory Compliance Documentation
### Examination and Audit Preparation
**Regulatory Examination Readiness:**
```
SEC and FINRA examination preparation frameworks:
Documentation organization and maintenance:
- Client file completeness and organization standards
- Investment advisory agreement current versions and amendments
- Marketing material approval and distribution records
- Compliance training documentation and testing records
Policy and procedure compliance:
- Written supervisory procedures currency and implementation
- Compliance monitoring and testing documentation
- Exception reporting and remediation procedures
- Third-party service provider oversight and due diligence
Performance and fee verification:
- Investment performance calculation methodologies and support
- Fee billing accuracy and client acknowledgment
- Expense allocation procedures and documentation
- Benchmarking and peer comparison analysis
```
### Risk Management and Internal Controls
**Compliance Risk Assessment:**
```
Financial services risk management frameworks:
Operational risk identification and mitigation:
- Technology failure and cybersecurity breach prevention
- Fraud detection and prevention procedures
- Business continuity and disaster recovery planning
- Vendor management and third-party risk assessment
Investment and market risk management:
- Portfolio risk monitoring and measurement systems
- Concentration limits and diversification requirements
- Liquidity risk assessment and management procedures
- Counterparty risk evaluation and mitigation strategies
Regulatory and compliance risk controls:
- Rule change monitoring and implementation procedures
- Compliance testing and monitoring programs
- Violation detection and reporting procedures
- Corrective action planning and implementation tracking
```
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## Specialized Financial Services Applications
### Investment Management Compliance
**Portfolio Management Documentation:**
```
Investment management compliance frameworks:
Investment decision-making documentation:
- Investment committee meeting minutes and decision rationale
- Security selection and portfolio construction methodology
- Risk management and position sizing procedures
- Performance attribution and analysis documentation
Client reporting and communication standards:
- Portfolio performance reporting accuracy and timeliness
- Fee calculation and billing transparency
- Investment strategy explanation and market commentary
- Risk reporting and client education materials
Due diligence and research compliance:
- Investment research standards and documentation requirements
- Third-party research evaluation and approval procedures
- Conflict of interest management in research and recommendations
- Research distribution and client communication protocols
```
### Retirement Plan Services
**ERISA Fiduciary Compliance:**
```
Retirement plan fiduciary obligation frameworks:
Plan sponsor advisory services:
- Investment menu selection and monitoring procedures
- Fee benchmarking and reasonableness analysis
- Plan design and compliance consulting