How to Grow & Protect

Your Valuable Advisory Business, Reputation  & Client Relationships

Securities, compliance, corporate, tax, M&A lawyer, and serial entrepreneur with over 26 years of experience. Focused on strengthening the legal, risk management, and compliance functions of investment advisers, broker dealers, and investment funds. Mr. Smith also leads legal and compliance diligence for acquisitions of registered investment advisers. Formerly worked in the Director of Enforcement’s Office at the SEC and was Investigative Counsel at the Financial Crisis Inquiry Commission.​

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EDUCATION​

• Georgetown Law - LL.M Securities &Financial Regulation​
• University of Kentucky – Juris Doctor & Bachelor of Science in Accounting​

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CERTIFICATIONS​

• Investment Adviser Certified Compliance Professional -National Center of Compliance Professionals​
• Certified Regulatory and Compliance Professional - FINRA Institute at Wharton​
• Certified in Risk Management - International Institute of Professional Education and Research​

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Jeffrey Smith, JD, LLM, CRCP, IACCP, CRM​

Chief Compliance Officer &

Managing Attorney

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• Jeffrey Smith, JD, LLM: Wealth Watch Advisors Chief Compliance Officer & Legal Counsel
• 7 Divisions (32 Team Members)
• Executive Leadership Team
• Service Delivery & Practice Coordination
• Administration, Practice Coordination, IT, and Human Resources
• Quality Control
• Accounting, Finance and Tax
• Treasury/Asset Management
• Sales, Marketing & Client Relations

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•  6 Directors
• Olivia Berman
• Eduardo Iniesta
• Erika Pineda
• John Almerino
• Mhai Largo
• Tonette Rivera

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• 2 Quality Control & Training Leaders

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Our Amazing Team ​

• Always seek to create the maximum positive impact and minimal negative impact
• Apply the Golden Rule
• Always seek to deliver on time, with excellence, and within budget
• Make excellent communication and understanding the cornerstone of every relationship
• Timely Client Responses 
• Clear Timeframes for Assignments 
• Regular Feedback Collection 
• Adapting to Client Preferences 
• Always keep your word

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Our Guiding Principles

• Punctuality, Organization and Efficiency in Meetings
• Courtesy and Respect at all Times ​
• Demonstrating the Human Element ​
• Proactive Communication ​
• Clear and Organized Documentation ​
• Post-Delivery Follow-up ​
• Anticipating Future Needs ​
• Consistency Across the Team ​
• Recognizing Client Milestones ​
• Transparency on Fees and Scope ​
• Internal Quality Review before Delivery ​
• Closing the Loop ​

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• LawVisory & ConsultVisory: All legal, compliance and consulting services needed by RIAs, investment funds, broker-dealers, private equity firms, venture capital firms, digital asset firms, SPACs, and governments

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• TaxVisory: Powerful and innovative tax mitigation and asset preservation strategies

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• MarketVisory: Marketing strategies and implementation to boost AUM

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• StatsVisory: Management by statistics and applying proven formulas for success

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• TechVisory: Outsourced IT and cybersecurity solutions (Excalibur is Coming)

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• C-Visory: Executive recruiting and placement services

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• FinVisory: Accounting and finance services including outsourced CFOs

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Our Suite of Solutions ​

How to Maximize the Value of Your Business & Protect It

Avoid all material legal and compliance risks​

01

Mitigate material liability risks that could negatively impact EBITDA

02

Increase Client Attraction and Retention​

03

Increase Staff Attraction and Retention

04

Have an optimized and effectively implemented growth model​

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How to Avoid all Material ​

Legal and Compliance Risks?​

• SEC Risks (Civil)​
• SEC Division of Examinations​
• SEC Division of Enforcement​
• State Securities Authorities​
• Department of Justice (Criminal)
• State Securities Divisions (Civil & Criminal)

Overwhelming Number of Laws, Rules & Regulations​

Civil Laws​

• 8 Primary Federal Statutes​
• Dozens of SEC Rules​
• Different Laws in All 50 States & Territories​
• Tax & ERISA Law Compliance​
• Insurance Regulations​
• FINRA Rules for Dually Registered RIAs or Reps​

Overwhelming Number of Laws, Rules & Regulations​

Criminal Laws​

• 5 Primary Federal Statutes​
• Many SEC Rules, such as Rule 10b-5 enforced by the DOJ​
• Different Criminal Laws in All 50 States & Territories​
• Tax Law Criminal Enforcement​

Civil Penalties for Violation of Federal Law​

Criminal Penalties for Violation of Federal Criminal Laws​

2023 & 2024 SEC Enforcement Summary​

• In fiscal year 2024, the SEC ordered $8.2 billion in financial remedies, including more than $600 million in civil penalties from recordkeeping cases alone.​

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• In fiscal year 2023, the SEC ordered $4.95 billion in total remedies: $3.37 billion in disgorgement and $1.58 billion in civil penalties.​

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• This is in addition to the firms and individuals that were either forced into SEC receivership or barred from further activities.​

Mitigate Material Liability Risks That Could Negatively Impact EBITDA​

• Avoid SEC, State, and FINRA Enforcement Actions​
• Avoid issues with the DOJ and IRS​
• Avoid Cybersecurity events​
• Avoid Client Litigation and Arbitrations:​
• Keep current the IPS, client objectives, and risk profile​
• Monitor alignment with all of these ​
• Avoid errors​
• Immediately make clients whole​
• Treat client complaints with the highest priority​
• Rigorous risk management and investment diligence​
• Quarantine each risk area​
• Carefully screen and monitor investment adviser representatives and outside business activities​

Top 2024 Enforcement Actions​

Increase Client Attraction and Retention​

• Client Agreement Assignments & Negative Consent​
• Highly Effective Tax Mitigation Solutions​
• S Corp Planning and Tax Deferral is Not Good Enough​
• Tax-Free and Asset-Protected Environment is Best​
• Tax Mitigated Transactions at a Minimum​
• Family Office Services​
• Tax return preparation​
• Bill Payment Services (look out for custody issues)​
• Concierge Services​
• Complete Balance Sheet Planning​
• Business Client Growth and Exit Planning Services​
• Philanthropy & Charitable Planning​
• Estate Planning​
• College Planning​
• Performance-Based Fees​

Increase IAR & Staff Attraction and Retention​

• Highly Attractive Long-Term Incentive Compensation Plan
• Clear Career Advancement and Mentorship Programs​
• Top Shelf Performance-Based Recruiters (C-Visory)​
• Anonymous Team Surveys​
• Weekly Statistics Driven Performance Monitoring (StatsVisory)​
• Culture of Validation and Success Empowerment​
• More frequent compensation tied directly to desired goals and performance​
• Gamified Environment (e.g., competitions and make it fun)​
• Successful Client Lead and Development Programs (MarketVisory)​
• “Got Your Back” culture rather than “Stab in the Back”​
• Flexible “Yes We Will Figure it Out Together” culture​
• Clarify your culture, your mission, purposes, and code of client service

Have an Optimized and ​

Effectively Implemented Growth Model​

• Create an organizational board that shows every division of your company, along with each person who is responsible for a valuable final result.
• Know exactly what your measurable strategic growth goals are for each division.​
• Identify all actions and “sub-actions” needed to achieve these​ goals
• Track each of these actions and sub-actions (“ Statistics”) and receive reporting on the activities weekly to ensure they are all trending in the correct direction. ​
• Have each responsible person apply the correct leadership actions (Formula) based on how the actions and sub-actions are trending.​

Case Study #1 – Tax Mitigation, Privacy, Asset Preservation, and Multi-Generational Planning​

• 4 taxable estates with $7 billion that avoided all taxes​
• 4 Ultra High Net Worth (HNW) Families​
• Created a zero-tax environment for income tax, capital gains tax, and estate tax​
• Zero up-front fees charged (fees are charged in perpetuity, approximating 2% per annum)​
• 4 new distinct accounts created that all now need third-party top-level investment advice​

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Case Study #2, 3, 4, 5 – Emergency End of Year Tax Mitigation Planning​

• $17MM in taxable income avoided for 9 HNW families, along with future returns from the investment​
• $500k in traditional to Roth IRA rollovers with minimal taxes​
• $3MM in ordinary taxable income and FICA offset 100%​
• $10MM is taxable income avoided through charitable contributions​

Case Study #6 – RIA Multi-Family Office Support​

• $20MM HNW client suffered sudden patriarchal death​
• Client liquidated illiquid medical practice assets on a stepped-up basis​
• Structuring is being done to protect future income and appreciation from future taxes and creditors​
• International structuring is being done to mitigate taxes and potential liabilities from complex global transactions that are anticipated​

Case Study #8 – RIA SEC Enforcement Avoidance

• Large $15 billion RIA had Marketing Rule violations it discovered that were exactly aligned with recent SEC enforcement actions.​

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• These were identified quickly, corrected immediately, and then we interfaced with the SEC through our unique relationships at the SEC to avoid any SEC enforcement action.​

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Thank You!

Jeffrey Smith​, CCO & General Counsel

LawVisory Founder & Managing Attorney​

jsmith@lawvisory.com ​

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1250 Connecticut Ave NW Ste, 700​ Washington, DC 20036​

​+1 202-854-0515​

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www.lawvisory.com ​