More On Legal & Compliancefrom The Advisor's Professional Library
- Registration Requirements for Investment Advisor Representatives (IARs) When individuals launch an advisory firm, they must avoid marketing themselves or the firm as investment advisors before they are properly approved and registered. Otherwise, they are subject to severe penalties.
- RIAs and Customer Identification Just as RIAs owe a duty to diligently protect their clients privacy and guard against theft, firms also play a vital role in customer identification. Although RIAs are not subject to an anti-money laundering rule, securities regulators expect advisors to address these issues in their policies and procedures.
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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