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.
- Updating Form ADV and Form U4 When it comes to disclosure on Form ADV, RIAs should assume information would be material to investors. When in doubt, RIAs should disclose information rather than arguing later with securities regulators that it was not material.
Kevin Keller, CEO of CFP Board, says that the "buzzwords" being bandied about on "K Street, Capitol Hill, and at the SEC" is that when it comes to reforming financial planning services, Congress is debating some type of "harmonization or a universal standard of care." The concern among the three planning groups, Keller says, is that those words are "in effect a euphemism for a lower standard of care. We think it's in the best interest of the public that financial planning services be provided at a fiduciary level and at a level that requires a high level of competence."
When the 111th Congress convenes, Keller says, "financial services reform is one of its top priorities." The economic crisis, he says, was "clearly not caused by financial planners; what we do know is that if the financial intermediaries that got us into this mess were putting the best interests of their clients first, we probably wouldn't be in this situation." So the three planning groups want to "make sure that in any movement or legislation that might seek to impose some uniform standard of care, that the interests of the public are represented and protected and that financial planning doesn't get swept up in some broad legislation."
The top executives of the three groups held their first "exploratory" meeting on December 3, and while no date has been set for the next meeting, Keller says "there is work happening at the staff level," of each organization. "We'll be continuing to work with the other two groups."