More On Legal & Compliancefrom The Advisor's Professional Library
- The Need for Thorough and Effective Policies and Procedures Whethere an advisor is SEC or state-registered, RIAs must revise their policies and procedures to address significant compliance problems occurring during the year, changes in business arrangements, and regulatory developments.
- Client Communication and Miscommunication RIA policies and procedures must specify what type of communications should be retained. The safest course of action is for RIAs to retain all communicationsto clients, from clients, and about client accounts. To comply with fiduciary obligations, communications must be thorough and not mislead.
The SEC announced that Charles Fishkin, who helped create the Commission's Office of Risk Assessment under-then Chairman Bill Donaldson in 2004 and propagated an agency-wide risk management program designed to make the regulator more proactive, will leave the Commission in the new year to take a position in New York with AllianceBernstein. The agency said Fishkin, a former Fidelity Investments' executive, will help SEC Chairman Christopher Cox in "identifying a successor."
Another personnel change at the SEC might be of interest. The associate director of the Commission's Office of Compliance Inspections and Examinations (OCIE), John McCarthy, who joined the SEC in 1992, left the Commission in November to join what the agency said was a "privately held proprietary trading firm."