More On Legal & Compliancefrom The Advisor's Professional Library
- Scope of the Fiduciary Duty Owed by Investment Advisors A fiduciary obligation goes beyond the suitability standard typically owed by registered representatives of broker-dealer firms to clients. The relationship is built on the premise that the advisor will always do the right thing for the person or entity receiving advice.
- 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.
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.