More On Legal & Compliancefrom The Advisor's Professional Library
- Updating Form ADV and Form U4 When it comes to disclosure on Form ADV, RIAs should assume information would be material to investors. When in doubt, RIAs should disclose information rather than arguing later with securities regulators that it was not material.
- Regulatory Oversight of Investment Advisors Although the regulatory environment is in a state of flux, it is imperative that RIAs adhere to their compliance obligations. To ensure compliance, RIAs and IARs must fully understand what those obligations are.
House Financial Services Chairman Barney Frank (D-Massachusetts) voted against the Harkin amendment, stating that dual oversight of equity-indexed annuities by the Securities and Exchange Commission (SEC) and the states was the best way to go.
However, Rep. Spencer Bachus (R-Alabama) ranking minority member on the House Financial Services Committee, said that over the last two years the "states did an excellent job of regulating the insurance industry." Regulating EIAs as securities, Bachus argued, would "lead to other insurance policies being classified as securities," like whole life policies. He questioned whether it was wise to put yet another product under the SEC's oversight when the agency is "struggling."
Rep. Scott Garrett (R-New Jersey) concurred with Bachus, stating that the "record shows that the states have regulated these [EIA] products appropriately."