From the March 2009 issue of Research Magazine • Subscribe!

ICI Shares Fund-Industry Wish List

More On Legal & Compliance

from The Advisor's Professional Library
  • Privacy Policies and Rules Whether an RIA is SEC or state-registered, the firm must have policies and procedures in effect to protect clients’ privacy. Policies and procedures should explicitly require an RIA to send out its privacy notice each year.
  • Nothing but the Best Execution Along with the many other fiduciary obligations owed by RIAs, firms owe a duty to seek best execution of clients’ transactions.  If they fail to do, RIAs violate Section 206 of the Investment Advisers Act.

The head of the fund-industry's advocacy group has outlined the regulatory reforms that most need Washington's attention. Here's the list, compiled by Paul Schott Stevens of the Investment Company Institute:

o Establish a single U.S. capital markets regulator for the SEC and Commodity Futures Trading Commission.

o Update the securities laws and harmonize laws that regulate brokers and investment advisors.

o Enlarge the mission; tough enforcement of securities laws must include smart oversight.

o Pay attention to agency management, including a better mix of disciplines on SEC staff, and

o Restructure staff offices.
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Please send your views on the wish list to jlevaux@researchmag.com.

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