One of the most important tasks for mutual fund and ETF chief compliance officers is oversight of the advisors and sub-advisors.

If you are a chief compliance officer, a recent SEC case brought against a large broker-dealer should cause you to re-think how you review and assess the adequacy of your service provider's email retention and review policies. Here's why: If someone at the advisor or sub-advisor is sending deceptive emails to clients or prospective clients, you want to ensure the email retention system and review policies are reasonably designed to detect the deception. Federal securities laws prohibit investment advisors from engaging in any transaction, practice, or course of business that operates as a fraud or deceives clients or prospective clients.

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