More On Legal & Compliancefrom The Advisor's Professional Library
- Using Solicitors to Attract Clients Rule 206(4)-3 under the Investment Advisors Act establishes requirements governing cash payments to solicitors. The rule permits payment of cash referral fees to individuals and companies recommending clients to an RIA, but requires four conditions are first satisfied.
- 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 SEC and FINRA are hosting five regional CCOutreach BD regional seminars beginning May 13 for broker/dealer firms. The seminars will feature panelists from local SEC and FINRA staff and CCOs from broker/dealer firms, and will address such topics as the current regulatory environment, enterprise-wide supervision, recordkeeping, and information protection. Further information is available at www.sec.gov/info/bdccoutreach.htm.
? Speaking at the Investment Advisers Association conference on March 10, Andrew "Buddy" Donohue of the SEC pledged to have Form ADV Part II out by the end of this year, as well as the books and records rule.
? NAVA, the Association for Insured Retirement Solutions, has named Rick Heil as its director of standards, responsible for shephering NAVA's Straight-through Processing Standards Initiative (NAVA STP), a standards-based process which is designed to streamline the sale of annuities.
? On February 19, FPA President Richard Salmen met with SEC Chairman Mary Schapiro to discuss regulatory reform.
? Diahann Lassus, chair of NAPFA, said February 26 that the fee-only group would "vigorously support" changing an SEC rule that would require RIAs to use an "independent custodian" rather than a "qualified custodian" to custody client assets. The possibility of a rule change arose during an SEC hearing prompted by the Bernie Madoff scandal that addressed how to protect investors from fraud.
? NAIFA members were scheduled to hold multiple visits with members of Congress on March 17, including, the group said, visits with the leadership of the House and Senate tax-writing committees.