SIPC Gets New Directors

Investor protection group the first line of defense in the event a brokerage firm fails

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  • Where Are We Headed? The ultimate compliance goal is to help ensure that everyone associated with an advisory firm acts ethically at all times.  Advisors and RIAs should do the right thing, even when regulators are not looking over their shoulders.
  • Disaster Recovery Plans and Succession Planning RIAs owe a fiduciary duty to clients to prepare for disasters and other contingencies. If an RIA does not have a disaster recovery plan, clients’ financial well-being may be jeopardized.  RIAs should also engage in succession planning, ensuring a smooth transaction if an owner or principal leaves.   
The U.S. Senate has confirmed three new directors to the Securities Investor Protection Corp. (SIPC), which maintains a special reserve fund authorized by Congress to help investors at failed brokerage firms. The three new SIPC directors are: William Heyman, vice chairman and chief investment officer (CIO), and a member of the Management Committee of The Travelers Companies, Inc.; William Jasien, senior VP, ING Financial Advisors LLC, and head of Business Development for various defined contribution business lines across North America; and Mark Shelton, managing director and general counsel, Wealth Management US, and co-global general counsel, Global Wealth Management & Business Banking at UBS.
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