New Business Offers RIA Compliance Services

Zachary Gronich, CEO of RIA In A Box, will head the new firm, according to a release from the firm.  Hovig Melkonian, director of compliance at RIA In A Box and former Goldman Sachs compliance consultant, will transition to Lexington Compliance to lead the compliance team.

“We will provide RIAs with the compliance oversight that is increasingly necessary in the post-Madoff securities climate,” said CEO Zachary Gronich. “As Congress works through new regulatory legislation, it is becoming increasingly clear that RIAs need a whole new level of compliance expertise and understanding and we can provide them with everything they need so they don’t have to worry.”

Based in Manhattan, with an office in Houston, Lexington Compliance said it offers three levels of compliance services for established RIAs:

• For smaller firms that need a compliance expert on-call, Lexington will provide seven-day-a-week e-mail support from one of the Lexington compliance experts. This service level includes access to an online compliance forum where RIAs can read the latest rule and regulation proposals for the investment adviser world and determine how they will affect a practice.
• For mid-sized firms that need to augment their internal compliance efforts, Lexington Compliance provides the e-mail support and online compliance forum participation as well as compliance review services for ads, Web site, business cards, seminars, and letterhead, plus compliance support for advisory documents. Lexington experts will also handle annual ADV amendments, including coordination of annual renewal fees to ensure firms remain registered.
• For larger firms needing more comprehensive compliance oversight, Lexington Compliance provides all services included with the previous two options as well as a compliance expert assigned to each RIA firm, who will work directly with an RIA’s in-house compliance officer to ensure total compliance.  Also included are on-site compliance reviews conducted every six months by the director of compliance, starting with an initial on-site compliance review. The compliance expert will check in frequently to make sure each firm is on top of new rules, regulations, and changes in order to flag possible compliance issues, the firm said.

Lexington Compliance also provides on-site mock audit services for RIAs to help ensure all books, records, files, folders, policies, procedures, documents, and advisory activities are in compliance.