More On Legal & Compliancefrom The Advisor's Professional Library
- Where Are We Headed? The ultimate compliance goal is to help ensure that everyone associated with an advisory firm acts ethically at all times. Advisors and RIAs should do the right thing, even when regulators are not looking over their shoulders.
- Best Practices for Working with Senior Investors Securities examiners deal harshly with RIAs that do not fulfill their fiduciary obligations toward senior investors, as the SEC and state securities regulators view older investors as particularly vulnerable and in need of protection.
The Securities and Exchange Commission published for public comment in October its Draft Strategic Plan outlining the Commission's strategic goals for fiscal years 2010 through 2015. The SEC says the draft plan surveys the forces shaping the SEC's environment and outlines over 70 initiatives designed to support its primary strategic goals. Comments on the proposal are due by November 16.
Besides strengthening the SEC's enforcement division, the strategic plan also sets out beefing up investment advisor and broker/dealer oversight. The Commission pointed to its consideration of rules designed to prevent political contributions from influencing the selection of investment advisers to the detriment of public pension plan clients, as well as rules that would provide additional safeguards to investors when an adviser has custody of client assets. The SEC says it will also "consider requiring those who provide investment advice to provide clients and prospective clients with clear, current, and more meaningful disclosure of their business practices, conflicts of interest, and backgrounds."