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.
- Agency and Principal Transactions In passing Section 206(3) of the Investment Advisers Act, Congress recognized that principal and agency transactions can be harmful to clients. Such transactions create the opportunity for RIAs to engage in self-dealing.
Opinions vary as to what Senator Christopher Dodd's retirement, announced in January, will mean for financial services and healthcare reform. Knut Rostad, chairman of The Committee for the Fiduciary Standard, says that now that Dodd will "not have to be reckoned with after the election, industry opponents of the Consumer Financial Protection Agency will push even harder to reduce its firepower, or go with the alternative and weaker option promoted by the Heritage Foundation. To balance this loss for Main Street, pushing and repackaging the fiduciary standard language to resonate with Main Street makes sense."
Others like analysts at Concept Capital, a Washington Research Group, agree that the proposed Consumer Financial Protection Agency "could not get 60 votes in the Senate." Therefore, the analysts say they expect Dodd "to weaken the agency by putting the existing banking regulators in charge of it." Dodd will also compromise to get a Senate/House financial reform bill enacted, the analysts predict, because he would "like to have his name on a signature piece of legislation" before he leaves office.