More On Legal & Compliancefrom The Advisor's Professional Library
- The Need for Thorough and Effective Policies and Procedures Whethere an advisor is SEC or state-registered, RIAs must revise their policies and procedures to address significant compliance problems occurring during the year, changes in business arrangements, and regulatory developments.
- 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 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.
Please send your views on the wish list to firstname.lastname@example.org.