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.
- Pay-to-Play Rule Violating the pay-to-play rule can result in serious consequences, and RIAs should adopt robust policies and procedures to prevent and detect contributions made to influence the selection of the firm by a government entity.
In response to the voice vote today (Dec. 11) during debate on the financial services reform bill which struck down the provision that would have allowed the SEC to give FINRA inspection and rulemaking authority over a large segment of investment advisory firms, Investment Adviser Association Executive Director David Tittsworth issued a statement of approbation.
"We are pleased that the House of Representatives recognized that it would be inappropriate for FINRA - the self-regulatory organization for broker-dealers - to exercise inspection and rulemaking authority over investment advisers," said Tittsworth. He thanked his association's members for their hard work on the issue and acknowledged the efforts of the North American Securities Administrators Association, Consumer Federation of America, and other industry organizations that joined together in supporting the Cohen/Frank amendment .
"The fight, however, is far from over as FINRA will continue its lobbying efforts to extend its jurisdiction over investment advisers," Tittsworth continued. "The Senate Banking Committee is still developing its regulatory reform legislation and it appears that the regulatory reform debate will continue into 2010."