How often must investment advisers review their compliance policies?

Investment advisers are required to review their compliance policies at least annually. This annual review is essential to ensure that the compliance policies and procedures remain effective and aligned with both regulatory requirements and the changing business environment. Regular reviews help identify any deficiencies, allow firms to adapt to new rules and regulations, and ensure that the policies reflect current practices and risks.

The annual review requirement emphasizes the importance of maintaining a robust compliance framework and demonstrates a commitment to compliance within the organization. This practice also supports a culture of compliance by ensuring that advisers are regularly updating their policies, training staff, and addressing any issues that may arise throughout the year. In contrast, more frequent reviews, such as quarterly or monthly, may exceed what is mandated, while less frequent reviews such as biannually would not satisfy the regulatory expectation.