More On Legal & Compliancefrom The Advisor's Professional Library
- The Few and the Proud: Chief Compliance Officers CCOs make significant contributions to success of an RIA, designing and implementing compliance programs that prevent, detect and correct securities law violations. When major compliance problems occur at firms, CCOs will likely receive regulatory consequences.
- Anti-Fraud Provisions of the Investment Advisers Act RIAs and IARs should view themselves as fiduciaries at all times, whether they meet the legal definition or not. Deviating from the fiduciary standard of full disclosure while courting clients may cause the advisor significant problems.
In testimony before the House Financial Services Committee on June 24, Cathy Weatherford, CEO and president of NAVA, the Association for Insured Retirement Solutions, citing the comprehensive regulatory structure composed of the SEC, FINRA, and the 50 individual state regulators, rejected calls for additional regulation of the insurance industry.
"Given the current regulatory protections, adding yet another layer of regulation to the insurance industry is unnecessary," she testified. "Further, separating financial regulation and consumer protection regulation is not prudent and would present significant risks to consumers. It could also prevent the best products from reaching consumers in a timely fashion...In summary, while we do not believe an additional consumer protection regulator is necessary or even advisable for the insurance industry, we ask the Congress to continue to focus on how regulatory structures and necessary consumer protections can be operated and administered in the most effective manner. This is why we support Treasury's proposals to modernize and improve our system of insurance regulation, as well as its six principles for insurance regulation."
Weatherford also reaffirmed NAVA's commitment to the consumer protection principles of transparency, suitable sales and education, and training, noting that the organization urges uniform passage of the current NAIC Suitability, Disclosure and Senior Designation Models as well as the adoption of a summary prospectus by the SEC for annuity purchasers such as has already been adopted for mutual funds.