More On Legal & Compliancefrom The Advisor's Professional Library
- Recent Changes in the Regulatory Landscape 2011 marked a major shift in the regulatory environment, as the SEC adopted rules for implementing the Dodd-Frank Act. Many changes to Investment Advisers Act were authorized by Title IV of the Dodd-Frank Act.
- 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.
While the chief compliance officer (CCO) should of necessity be the main player in the compliance review process, whenever possible I strongly recommend that at least one other firm officer be substantively involved in the review. It is imperative for senior management (an individual other than the CCO) to have a working understanding of the compliance processes and exam-related issues in the event of the CCO's absence or resignation or termination. The SEC is not likely to postpone an exam in the event of a CCO's extended absence or resignation/termination. Ultimately, senior management is responsible, and must be sufficiently prepared to step in if necessary. For these reasons, I strongly encourage senior management's participation in the compliance review process.