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.
- 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.
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."