Barron’s Article Profiles Diligence Review Corp. Research

Spread the love

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