More On Legal & Compliancefrom The Advisor's Professional Library
- Regulatory Oversight of Investment Advisors Although the regulatory environment is in a state of flux, it is imperative that RIAs adhere to their compliance obligations. To ensure compliance, RIAs and IARs must fully understand what those obligations are.
- Differences Between State and SEC Regulation of Investment Advisors States may impose licensing or registration requirements on IARs doing business in their jurisdiction, even if the IAR works for an SEC-registered firm. States may investigate and prosecute fraud by any IAR in their jurisdiction, even if the individual works for an SEC-registered firm.
The President's Working Group on Financial Markets (PWG) announced November 14 "initiatives to strengthen oversight and the infrastructure of the over-the-counter derivatives market." The Group's top priority, it said, was to implement central counterparty services for credit default swaps (CDS), which in turn should reduce "the systemic risk associated with counterparty credit exposures."
The Working Group is chaired by the Treasury secretary and includes the leaders of the Federal Reserve, the SEC, and the Commodity Futures Trading Commission. The latter three agencies signed a joint Memorandum of Understanding detailing how they will "cooperate, coordinate, and share information" in regulating the CDS market.
In a release, Treasury said the PWG is currently reviewing design elements of "several potential central counterparty providers," and anticipates that one or more such providers will be operating before the end of 2008.