More On Legal & Compliancefrom The Advisor's Professional Library
- The Need for Thorough and Effective Policies and Procedures Whethere an advisor is SEC or state-registered, RIAs must revise their policies and procedures to address significant compliance problems occurring during the year, changes in business arrangements, and regulatory developments.
- RIAs and Customer Identification Just as RIAs owe a duty to diligently protect their clients privacy and guard against theft, firms also play a vital role in customer identification. Although RIAs are not subject to an anti-money laundering rule, securities regulators expect advisors to address these issues in their policies and procedures.
Top Democratic negotiators reopened negotiations on the financial services reform bill Tuesday, June 29, to remove a $19 billion tax on big banks and hedge funds that Republican Senator Scott Brown of Massachusetts said he could not support.
Brown told Senator Christopher Dodd (D-Connecticut) and Rep. Barney Frank (D-Massachusetts) in a letter that he would vote against passage of the Wall Street reform bill if they did not remove the $19 billion tax on big banks that was added during the conference committee, which approved the bill on June 25.
"This tax," Brown wrote, "was not included in the Senate bill, which I supported. If the final bill contains these higher taxes, I will not support it."
As written, the tax was set to be imposed on all financial companies with more than $50 billion in assets, including large hedge funds and insurance companies. Published reports say that if the tax is deleted from the bill an alternative would be to consider raising banks' federal deposit insurance fees and possibly tapping the $700 billion Troubled Asset Relief Program (TARP).
The House is still scheduled to vote on the bill on Wednesday, June 30, as they want to break on Thursday and Friday to honor Senator Robert Byrd's death.Byrd died on the morning of June 28; Democrats need at least four Republicans to vote for the bill because Byrd's death left them with only 56 of the 60 votes needed to pass the bill. Two Democrats, Senators Maria Cantwell (D-Washington), and Russ Feingold (D-Wisconsin), plan to vote "no" on the reform bill.