More On Legal & Compliancefrom The Advisor's Professional Library
- Nothing but the Best Execution Along with the many other fiduciary obligations owed by RIAs, firms owe a duty to seek best execution of clients transactions. If they fail to do, RIAs violate Section 206 of the Investment Advisers Act.
- Best Practices for Working with Senior Investors Securities examiners deal harshly with RIAs that do not fulfill their fiduciary obligations toward senior investors, as the SEC and state securities regulators view older investors as particularly vulnerable and in need of protection.
The new self-regulatory organization that, once approved by the SEC, will combine NASD and NYSE's regulatory arms, will have a different name than the one announced three weeks ago, due to potential religious sensitivities to the acronym for its first choice of name, Securities Industry Regulatory Authority, or SIRA.
Because of SIRA's similarity to the Arabic term sira or sirah, used to refer to the traditional biographies of Muhammad, the NASD will use a different name for the new super SRO: Financial Industry Regulatory Authority, or FINRA, according to a July 12 letter e-mailed to firms from NASD Chairman and CEO Mary Schapiro, who will be CEO of the new organization. She called the change "simply the right thing to do."
"No matter what name the new organization operates under, FINRA is our opportunity to define the future of self-regulation, ensuring that industry input continues to be a valued component of the regulatory process," Schapiro says in the letter.
To see the letter in its entirety, go to: