The Heat Is On

Anniversary Letter

Admit it – if you are familiar with this wonderful piece of 80’s pop music, you are humming this melody as you read (sorry, not sorry).  Regardless, the song’s title can be used to describe the state of the world over the past year.  2022 saw the Earth record its sixth-highest average temperature since global records began in 1880.   The Russia/Ukraine conflict continues to rage, appearing unlikely to cool off any time soon.  Political tensions both at home (Debt Ceiling) and abroad are at a seemingly constant risk of boiling over.  Inflation ran ablaze through the economy, contributing to the biggest bank failures since 2008.  All puns aside, the past twelve months have been difficult to navigate, and the next twelve months look like the heat wave (last pun) will continue.

The SEC continued their push to increase regulation and transparency across multiple financial platforms, evidenced in part by the legal action taken against Binance and Coinbase.  Closer to our neck of the woods, the SEC released their second Risk Alert on the Marketing Rule, and their 2023 Exam Priorities highlighted their focus on disclosures and recommendations to meet Regulation BI requirements, the proper delivery of Form CRS, and making sure RIAs to Private Funds are following applicable guidelines.  Further, the SEC proposed rules regarding Cybersecurity Risk Management and ESG Investment Practices, which are among twenty-seven proposed rules that the SEC has targeted for final action later this year.  We will provide guidance on any new rules as they are adopted.

The race to integrate Artificial Intelligence (AI) into the Investment Advisory space has accelerated significantly in the past year.  While AI and Machine Learning are terms that have been around for over half a century, the abilities represented through OpenAI’s ChatGPT program have caused nearly every industry to come to terms with how best to incorporate artificial intelligence.  The SEC has taken note, and they are actively discussing proposing a rule (currently titled Prohibition of Conflicted Practices for Investment Advisers That Use Certain Covered Technologies). Expect to hear more on this subject in the coming months.

While market volatility over the past twelve months has been high, markets have recovered most of the ground lost over the same period the year prior.  Interest rates have risen markedly as the Fed tries to rein in inflation.  Commercial Real Estate continues to deal with vacancy issues, even as more companies are requiring employees to work in-office.  These developments have shifted the investing landscape, and the industry has had to re-evaluate what strategies are best suited for their clients in the here and now as well as the coming months.  We at The Consortium are dedicated to helping you navigate the ever-changing regulatory landscape.  As the next twelve months unfold, we will keep you abreast of any items that will impact your business so that you can continue to focus your energy on your clients.  We may not be able to change or control the “heat”, but we can absolutely help you stay cool, calm, and collected.

Have a safe and enjoyable 4th of July, everyone!

— Todd Sakoda
— John T. Carr
— Lisanne M. Butterfield

The Consortium has been lifting the burden of compliance for advisors since July 4, 1989.

If you are the Owner, CEO, President, Chief Compliance Officer – even the person in charge of marketing – you have a burden to comply with the securities laws. Our team of Professional Weightlifters has an array of compliance services and resources to lift that burden off your shoulders.

If you need a compliance partner providing boots on the ground support, our on-going consulting services may be the solution for you.

If you’re looking for cost effective ways to stay in the loop, checkout our regular publications:


A free monthly e-mail service with brief postings of what’s the hot industry buzz.

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The monthly executive summary of all the news that made the news. Don’t wait for the annual update — get timely details.

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A value-added subscription service (which also includes the CompliancE-News) – provides timely alerts when news hits, and newly published research and forms.

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If you are a do-it-yourself type person, we offer a number of compliance resources and programs:

RIA Fast Track Program

Includes compliance resources and consultations to get your operations up and running. Designed as a start-up service for new RIA firms, it is a part do-it-yourself and part “Ask the Expert.” If you are creating a new RIA, contact us for details.

Learn More About the Program

RIA Pump It Up Refresher Course

Includes compliance resources and consultations to get your operations in tip-top shape.  Designed to lift the burden of compliance off your shoulders in an efficient and economic manner, it is a part do-it-yourself and part “Ask the Expert.”  If you need to dust off your compliance files, contact us for details.

Compliance Resources

Both educational and easily customizable to your practice are available for your use.

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If you need a compliance partner providing boots on the ground support, our on-going consulting services may be the solution for you.

  • Our Professional Weightlifters are available to help you stay on top of the compliance environment and help you remember all those compliance do’s and don’ts.
  • Need more time in your day? We assist you with the implementation of your compliance responsibilities.
  • Contact The Consortium to see how we can be of assistance to you: or (971) 801-1346.