RIA compliance manual template

Harbor Lane Wealth Partners LLC: compliance manual

Starting draft, not adopted

Click any paragraph or point to edit it. Your edits stay when you change the firm facts above.

1. 01Purpose and scope

   Implements 17 CFR 275.206(4)-7(a)

   Section 01 textThis section states that Harbor Lane Wealth Partners LLC adopts and implements written policies and procedures “reasonably designed to prevent violation, by you and your supervised persons, of the Act and the rules that the Commission has adopted under the Act.” It names who the manual binds (4 supervised persons today) and how each one receives it. The SEC’s adopting release asks an adviser to “first identify conflicts and other compliance factors creating risk exposure for the firm and its clients,” then write procedures that address those risks.

   This section states that Harbor Lane Wealth Partners LLC adopts and implements written policies and procedures “reasonably designed to prevent violation, by you and your supervised persons, of the Act and the rules that the Commission has adopted under the Act.” It names who the manual binds (4 supervised persons today) and how each one receives it. The SEC’s adopting release asks an adviser to “first identify conflicts and other compliance factors creating risk exposure for the firm and its clients,” then write procedures that address those risks.

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   • List the firm’s conflicts and risk areas before writing any procedure
   • Who the manual applies to, and how each person acknowledges it
   • How a procedure prevents, detects and corrects a violation
   • Where the current and earlier versions of the manual are kept

2. 02Chief compliance officer

   Implements 17 CFR 275.206(4)-7(c)

   Section 02 textRule 206(4)-7(c) requires the firm to “designate an individual (who is a supervised person) responsible for administering the policies and procedures.” This section names Dana Whitfield and says what the role covers. The adopting release expects the CCO to be “competent and knowledgeable regarding the Advisers Act” with the authority to enforce the policies; say how the firm gives the role that authority.

   Rule 206(4)-7(c) requires the firm to “designate an individual (who is a supervised person) responsible for administering the policies and procedures.” This section names Dana Whitfield and says what the role covers. The adopting release expects the CCO to be “competent and knowledgeable regarding the Advisers Act” with the authority to enforce the policies; say how the firm gives the role that authority.

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   • The CCO’s name and the date of designation: Dana Whitfield
   • What the CCO administers, and what is delegated to whom
   • How the CCO reports to the firm’s owners or senior management
   • How a person raises a compliance concern with the CCO

3. 03Code of ethics and personal trading

   Implements 17 CFR 275.204A-1; 275.204-2(a)(12), (13)

   Section 03 textRule 204A-1(a) lists what the code must include at a minimum: a standard of business conduct, compliance with the federal securities laws, access-person reporting and its review, prompt reporting of violations to the CCO, and a written acknowledgment from each supervised person. This section is the code itself, or points to it.

   Rule 204A-1(a) lists what the code must include at a minimum: a standard of business conduct, compliance with the federal securities laws, access-person reporting and its review, prompt reporting of violations to the CCO, and a written acknowledgment from each supervised person. This section is the code itself, or points to it.

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   • A standard of business conduct that reflects the firm’s fiduciary obligations
   • Who the firm’s access persons are, kept as a list of current and past names
   • Initial holdings reports within 10 days of becoming an access person
   • Quarterly transaction reports within 30 days after each calendar quarter ends
   • Annual holdings reports at least once each 12-month period
   • Pre-approval of IPO and limited-offering purchases
   • Prompt reporting of violations to the CCO, and written acknowledgment of the code

4. 04Portfolio management

   Implements IA-2204; 17 CFR 275.204-2(a)(8), (9)

   Section 04 textThe SEC’s adopting release lists “Portfolio management processes, including allocation of investment opportunities among clients and consistency of portfolios with clients’ investment objectives, disclosures by the adviser, and applicable regulatory restrictions.” This section says how Harbor Lane Wealth Partners LLC does each. Because the firm has discretion, Rule 204-2(a)(8) and (9) also require “a list or other record of all accounts” under discretion and the powers of attorney that grant it.

   The SEC’s adopting release lists “Portfolio management processes, including allocation of investment opportunities among clients and consistency of portfolios with clients’ investment objectives, disclosures by the adviser, and applicable regulatory restrictions.” This section says how Harbor Lane Wealth Partners LLC does each. Because the firm has discretion, Rule 204-2(a)(8) and (9) also require “a list or other record of all accounts” under discretion and the powers of attorney that grant it.

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   • How each client’s objectives and restrictions are recorded and checked
   • How investment opportunities are allocated fairly across clients
   • The list of discretionary accounts and the signed grants of authority
   • Who reviews accounts, and how often

5. 05Trading and best execution

   Implements IA-2204; 17 CFR 275.204-2(a)(3)

   Section 05 textThe adopting release lists “Trading practices, including procedures by which the adviser satisfies its best execution obligation, uses client brokerage to obtain research and other services (‘soft dollar arrangements’), and allocates aggregated trades among clients.” This section covers how Harbor Lane Wealth Partners LLC chooses brokers, reviews execution, and allocates block trades. Rule 204-2(a)(3) requires a memorandum of each order the firm gives.

   The adopting release lists “Trading practices, including procedures by which the adviser satisfies its best execution obligation, uses client brokerage to obtain research and other services (‘soft dollar arrangements’), and allocates aggregated trades among clients.” This section covers how Harbor Lane Wealth Partners LLC chooses brokers, reviews execution, and allocates block trades. Rule 204-2(a)(3) requires a memorandum of each order the firm gives.

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   • How brokers are selected and execution quality is reviewed
   • Any research or services paid for with client brokerage
   • How aggregated orders are allocated, including partial fills
   • How trade errors are found and corrected

6. 06Marketing and advertisements

   Implements 17 CFR 275.206(4)-1; 275.204-2(a)(11), (15), (16)

   Section 06 textThe Marketing Rule defines an advertisement as a communication “to more than one person” that offers the firm’s advisory services, and sets seven general prohibitions, starting with no “untrue statement of a material fact.” Harbor Lane Wealth Partners LLC markets through the firm website and social media. This section says how each advertisement is reviewed before use, and which records are kept.

   The Marketing Rule defines an advertisement as a communication “to more than one person” that offers the firm’s advisory services, and sets seven general prohibitions, starting with no “untrue statement of a material fact.” Harbor Lane Wealth Partners LLC markets through the firm website and social media. This section says how each advertisement is reviewed before use, and which records are kept.

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   • Review and approval of each advertisement before use, and who signs off
   • Who may post on the website and social media, and how each post is reviewed and kept
   • Keeping a copy of each advertisement under Rule 204-2(a)(11)

7. 07Electronic communications

   Implements 17 CFR 275.204-2(a)(7)

   Section 07 textRule 204-2(a)(7) requires the firm to keep “originals of all written communications received and copies of all written communications sent” relating to advice and recommendations, the movement of funds or securities, and the placing of orders, among other subjects. Because Harbor Lane Wealth Partners LLC’s advisers text or message clients, this section names the approved channels, how each is captured, and what happens to a business message that arrives on a channel the firm cannot capture.

   Rule 204-2(a)(7) requires the firm to keep “originals of all written communications received and copies of all written communications sent” relating to advice and recommendations, the movement of funds or securities, and the placing of orders, among other subjects. Because Harbor Lane Wealth Partners LLC’s advisers text or message clients, this section names the approved channels, how each is captured, and what happens to a business message that arrives on a channel the firm cannot capture.

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   • The approved channels for business messages, and how each is captured
   • Texting and messaging apps: capture method, devices, and personal phones
   • Review of a sample of messages, and who does it
   • What a person does when a client writes on an unapproved channel

8. 08Books and records

   Implements 17 CFR 275.204-2(a), (e)(1), (g)

   Section 08 textRule 204-2(a) lists the records Harbor Lane Wealth Partners LLC must make and keep. Most are kept “for a period of not less than five years from the end of the fiscal year during which the last entry was made on such record, the first two years in an appropriate office of the investment adviser.” For electronic records, Rule 204-2(g) asks the firm to index them for easy retrieval, keep a duplicate copy, and safeguard them from loss, alteration or destruction. This section says who keeps each record, where, and in what system.

   Rule 204-2(a) lists the records Harbor Lane Wealth Partners LLC must make and keep. Most are kept “for a period of not less than five years from the end of the fiscal year during which the last entry was made on such record, the first two years in an appropriate office of the investment adviser.” For electronic records, Rule 204-2(g) asks the firm to index them for easy retrieval, keep a duplicate copy, and safeguard them from loss, alteration or destruction. This section says who keeps each record, where, and in what system.

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   • The list of records the firm makes, each with its 204-2 paragraph
   • Where each record is kept, and who owns it
   • How electronic records are indexed, duplicated and limited to authorized people
   • When a record may be destroyed, and who approves it

9. 09Form ADV filings and brochure delivery

   Implements 17 CFR 275.204-1(a); 275.204-3(b)

   Section 09 textThis section covers how Harbor Lane Wealth Partners LLC keeps Form ADV current. Rule 204-1(a) requires an annual amendment “within 90 days of the end of your fiscal year,” and the instructions require prompt amendments when listed items become inaccurate. Rule 204-3(b) requires delivery of the brochure “before or at the time you enter into an investment advisory contract,” and, when the brochure has material changes, annual delivery within 120 days after fiscal year end of a current brochure or a summary of the changes.

   This section covers how Harbor Lane Wealth Partners LLC keeps Form ADV current. Rule 204-1(a) requires an annual amendment “within 90 days of the end of your fiscal year,” and the instructions require prompt amendments when listed items become inaccurate. Rule 204-3(b) requires delivery of the brochure “before or at the time you enter into an investment advisory contract,” and, when the brochure has material changes, annual delivery within 120 days after fiscal year end of a current brochure or a summary of the changes.

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   • Who prepares and files the annual updating amendment, and by when
   • What triggers a prompt amendment between annual filings
   • Brochure and brochure supplement delivery to new clients, with dates recorded
   • The annual delivery of a summary of material changes

10. 10Form CRS (relationship summary)

    Implements 17 CFR 275.204-5(b)

    Section 10 textHarbor Lane Wealth Partners LLC has retail investors, so it prepares and delivers a relationship summary. Rule 204-5(b) requires delivery “before or at the time you enter into an investment advisory contract with that retail investor,” posting the current Form CRS “prominently on your website, if you have one,” and delivery “within 30 days upon request.” The instructions require an update within 30 days when information “becomes materially inaccurate,” communicated to existing retail clients within 60 days.

    Harbor Lane Wealth Partners LLC has retail investors, so it prepares and delivers a relationship summary. Rule 204-5(b) requires delivery “before or at the time you enter into an investment advisory contract with that retail investor,” posting the current Form CRS “prominently on your website, if you have one,” and delivery “within 30 days upon request.” The instructions require an update within 30 days when information “becomes materially inaccurate,” communicated to existing retail clients within 60 days.

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    • Who keeps the Form CRS current and files it
    • Delivery points: new contracts, new accounts, rollovers, new services
    • Posting the current version on the firm website
    • Recording the date each Form CRS was given

11. 11Privacy and Regulation S-P

    Implements 17 CFR 248.30(a), (b)(2); 275.204-2(a)(25)

    Section 11 textRegulation S-P requires written policies that “address administrative, technical, and physical safeguards for the protection of customer information,” including a program to detect, respond to and recover from unauthorized access. Notice to affected individuals is due “as soon as practicable, but not later than 30 days” after the firm becomes aware of an incident, unless an exception applies. This section also covers Harbor Lane Wealth Partners LLC’s oversight of service providers and the disposal of customer information.

    Regulation S-P requires written policies that “address administrative, technical, and physical safeguards for the protection of customer information,” including a program to detect, respond to and recover from unauthorized access. Notice to affected individuals is due “as soon as practicable, but not later than 30 days” after the firm becomes aware of an incident, unless an exception applies. This section also covers Harbor Lane Wealth Partners LLC’s oversight of service providers and the disposal of customer information.

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    • The safeguards the firm uses, by kind: administrative, technical, physical
    • The incident response program, and who decides on customer notice
    • Service-provider contracts requiring notice to the firm within 72 hours of a breach
    • How customer and consumer information is disposed of

12. 12Custody of client assets

    Implements 17 CFR 275.206(4)-2(a), (b)(3)

    Section 12 textRule 206(4)-2(d)(2) counts as custody any arrangement, a general power of attorney included, “under which you are authorized or permitted to withdraw client funds or securities maintained with a custodian upon your instruction to the custodian.” Rule 206(4)-2(a) then requires a qualified custodian, notice to clients, a reasonable basis for believing the custodian sends account statements at least quarterly, and an examination by an independent public accountant at least once each calendar year, at a time the accountant chooses without notice. Harbor Lane Wealth Partners LLC has custody only through fee deduction; Rule 206(4)-2(b)(3) lifts that examination when custody comes “solely as a consequence of your authority to make withdrawals from client accounts to pay your advisory fee,” and, if the qualified custodian is a related person, only where the firm can rely on paragraph (b)(6).

    Rule 206(4)-2(d)(2) counts as custody any arrangement, a general power of attorney included, “under which you are authorized or permitted to withdraw client funds or securities maintained with a custodian upon your instruction to the custodian.” Rule 206(4)-2(a) then requires a qualified custodian, notice to clients, a reasonable basis for believing the custodian sends account statements at least quarterly, and an examination by an independent public accountant at least once each calendar year, at a time the accountant chooses without notice. Harbor Lane Wealth Partners LLC has custody only through fee deduction; Rule 206(4)-2(b)(3) lifts that examination when custody comes “solely as a consequence of your authority to make withdrawals from client accounts to pay your advisory fee,” and, if the qualified custodian is a related person, only where the firm can rely on paragraph (b)(6).

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    • Which qualified custodian holds each client account
    • The client’s written authority for each fee deduction
    • How the firm checks the custodian sends quarterly statements
    • Any other arrangement that could give the firm custody, reviewed each year

13. 13Proxy voting

    Implements Form ADV Part 2A, Item 17

    Section 13 textHarbor Lane Wealth Partners LLC does not vote client securities. Form ADV Part 2A Item 17, Voting Client Securities, is where that is disclosed. This section says the firm does not accept voting authority, and what staff do with proxy materials that arrive for a client.

    Harbor Lane Wealth Partners LLC does not vote client securities. Form ADV Part 2A Item 17, Voting Client Securities, is where that is disclosed. This section says the firm does not accept voting authority, and what staff do with proxy materials that arrive for a client.

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    • The statement that the firm does not vote client securities
    • What happens to proxy materials the firm receives

14. 14Valuation and fee billing

    Implements IA-2204; 17 CFR 275.204-2(a)(10)

    Section 14 textThe adopting release lists “Processes to value client holdings and assess fees based on those valuations.” This section covers how Harbor Lane Wealth Partners LLC values holdings without a ready market price and how each fee is calculated and checked against the client’s written agreement, which Rule 204-2(a)(10) requires the firm to keep.

    The adopting release lists “Processes to value client holdings and assess fees based on those valuations.” This section covers how Harbor Lane Wealth Partners LLC values holdings without a ready market price and how each fee is calculated and checked against the client’s written agreement, which Rule 204-2(a)(10) requires the firm to keep.

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    • The pricing source for each kind of holding
    • How fees are calculated, and who checks a sample
    • How billing errors are found and refunded

15. 15Business continuity

    Implements IA-2204

    Section 15 textThe adopting release lists “Business continuity plans” among the areas an adviser’s policies should address where relevant. This section says how Harbor Lane Wealth Partners LLC keeps serving clients, reaching its records and trading if its office, systems or key people are unavailable.

    The adopting release lists “Business continuity plans” among the areas an adviser’s policies should address where relevant. This section says how Harbor Lane Wealth Partners LLC keeps serving clients, reaching its records and trading if its office, systems or key people are unavailable.

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    • Critical systems, vendors and records, and how each is reached from a second place
    • Who acts if a key person is unavailable
    • How the plan is tested, and when

16. 16Annual review of this manual

    Implements 17 CFR 275.206(4)-7(b); 275.204-2(a)(17)

    Section 16 textRule 206(4)-7(b) requires the firm to “review, no less frequently than annually, the adequacy of the policies and procedures established pursuant to this section and the effectiveness of their implementation.” The adopting release says the review should consider compliance matters that arose during the year, changes in the business, and changes in the rules. This section sets when Dana Whitfield runs it and what is kept: Rule 204-2(a)(17)(ii) requires “any records documenting” the review.

    Rule 206(4)-7(b) requires the firm to “review, no less frequently than annually, the adequacy of the policies and procedures established pursuant to this section and the effectiveness of their implementation.” The adopting release says the review should consider compliance matters that arose during the year, changes in the business, and changes in the rules. This section sets when Dana Whitfield runs it and what is kept: Rule 204-2(a)(17)(ii) requires “any records documenting” the review.

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    • When the review runs, and who takes part
    • What is tested in each area of this manual
    • How findings are recorded and fixed
    • Keeping every version of the manual in effect now or within the past five years

17. 17Outside business activities

    Firm-specific section. Write the procedure here.

18. 18Gifts and entertainment

    Firm-specific section. Write the procedure here.

This outline is a starting draft built from the rule text. It does not by itself meet any rule; what counts is a manual written for this firm and carried out. Have your compliance counsel review the finished manual before the firm adopts it.