From the April 2009 issue of Investment Advisor • Subscribe!

New DOL Regs

More On Legal & Compliance

from The Advisor's Professional Library
  • Trading Practices and Errors When SEC-registered investment advisors conduct annual audits of firm policies and procedures, they should pay close attention to trading practices.  Though usually not required to, state-registered advisors should look at their trading practices and revise policies that do not fully protect clients.
  • 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.  
Department of Labor (Employee Benefits Security Administration, 29 CFR Part 2550, Investment Advice--Participants and Beneficiaries; Final Rule) regulations proposed in the Federal Register on January 21, 2009 can be downloaded here.
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