More On Legal & Compliancefrom The Advisor's Professional Library
- 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.
- U.S. Securities and Exchange Commission Information This information sheet contains general information about certain provisions of the Investment Advisers Act of 1940 and selected rules under the Advisers Act. It also provides information about the resources available from the SEC to help advisors understand and comply with these laws and rules.
The National Association of Personal Financial Advisors (NAPFA) announced at its annual meeting, beginning May 14 in Long Beach, California, that it had achieved several milestones in its 25th year of existence, and announced that its board had elected Diahann Lassus of Lassus Wherley in New Providence, New Jersey, as its next chair, succeeding Tom Orecchio. At the meeting, CEO Ellen Turf announced that membership in the fee-only group had reached 2,008--of whom 1,233 were NAPFA-registered advisors--that the group's budget was over $4 million, and that 46 study groups (which act like local chapters) were active across the country. Conference chair John Ritter noted that the gathering was the biggest-ever NAPFA national show, with 545 advisor attendees and 145 exhibitors.
As for the group's priorities on the regulatory front, Lassus and Ron Rhoades of NAPFA's industry issues committee ticked off the Rand Report at the SEC, senior investor protection, enhanced disclosure, particularly with the summary mutual fund prospectus, principal trading, and the growth of dually registered advisors. "The SEC," charged Lassus, "continues to focus more on Wall Street than Main Street." While in response to a question on the group's influence in Washington, Rhoades said "no one's ever comfortable with their lobbying clout," Lassus believes that "the SEC listens" to NAPFA.