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.
- Suitability and Fiduciary Duty Recommending suitable investments is more than just a regulatory obligation. Many investors bring cases claiming lack of suitability, so RIAs must continuously put the onus on clients to notify the advisor of changes in their financial 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.