More On Legal & Compliancefrom The Advisor's Professional Library
- RIAs and Customer Identification Just as RIAs owe a duty to diligently protect their clients privacy and guard against theft, firms also play a vital role in customer identification. Although RIAs are not subject to an anti-money laundering rule, securities regulators expect advisors to address these issues in their policies and procedures.
- Preventing and Dealing with Client Complaints Although the SEC has not provided specific guidance on how client complaints should be handled, a firms policies and procedures should provide clear direction how to do so, as neglecting complaints can exacerbate a bad situation.
The Department of Labor has delayed implementing its Investment Advice Regulation under a directive issued by the new Administration. The investment advice rule was originally proposed in 2008 and was scheduled to become effective on March 23, 2009.
DOL recently published its final reg under Section 408(b)(14) and 408(g) of ERISA, which addresses the provision of investment advice to participants in 401(k) plans and IRAs.
The notice of postponement reopens the comment period on the investment advice reg until March 6, 2009, according to the law firm Goodwin Procter in Boston, and delays the effective date until May 22, 2009. "It is expected that there could be significant changes made to the Investment Advice Regulation during this period," Goodwin Procter says in the firm's February 17 Financial Services Alert.