More On Legal & Compliancefrom The Advisor's Professional Library
- Code of Ethics Rule The Code of Ethics Rule, found in Rule 204A-1, uses severe consequences for violation to help ensure investment advisors will do the right thing.
- Anti-Fraud Provisions of the Investment Advisers Act RIAs and IARs should view themselves as fiduciaries at all times, whether they meet the legal definition or not. Deviating from the fiduciary standard of full disclosure while courting clients may cause the advisor significant problems.
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.