More On Legal & Compliancefrom The Advisor's Professional Library
- The Few and the Proud: Chief Compliance Officers CCOs make significant contributions to success of an RIA, designing and implementing compliance programs that prevent, detect and correct securities law violations. When major compliance problems occur at firms, CCOs will likely receive regulatory consequences.
- Conducting Due Diligence of Sub-Advisors and Third-Party Advisors Engaging in due-diligence of sub-advisors isnt just a recommended best practice it is part of the fiduciary obligation to a client. An RIA should be extremely reluctant to enter a relationship with a sub-advisor who claims the firms strategy is proprietary.
Securities and Exchange Commissioner Annette L. Nazareth announced her intention to leave the Commission to return to the private sector October 2. In her nine years at the Commission, as a Commissioner and previously as Director of the SEC's Division of Market Regulation, the SEC noted in a release that, Nazareth "has applied her financial markets expertise to a broad range of issues affecting investors and the securities markets." Nazareth has not set a date for her departure from the Commission, but has notified President Bush that she does not wish to be re-nominated, the SEC said in the release. Her term ended on June 5, 2007, but Commissioners may remain in their positions for up to 18 months beyond a term's end, unless a successor is appointed sooner.
With Nazareth's departure, the SEC will now have to replace two of its Commissioners, as Roel Campos left the Commission in September to join the law firm of Cooley Godward Kronish.