The latest salvo in this war has been fired by Diligence Review Corp., which specializes in performing due diligence reviews for private clients of SEC-registered investment advisors. It has just completed a first-of-its-kind comprehensive report, open to the public, that color-codes advisors by their regulatory offenses on the Form ADV, the document that firms use to register with the SEC and state securities authorities.
The result, called the Red-Yellow-Green Report, was released earlier this month. Out of 11,622 SEC-registered investment advisors as of July 2nd, 1,315 of them (11.31%) answered “yes” to at least one question that Diligence Review deems a “significant adverse regulatory event,” such as committing a felony or fraud. Such a black mark will get a registered investment advisor placed on Diligence Review’s red list.
More at https://www.barrons.com/articles/BL-PENTAB-264