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.
- The Custody Rule and its Ramifications When an RIA takes custody of a clients funds or securities, risk to that individual increases dramatically. Rule 206(4)-2 under the Investment Advisers Act (better known as the Custody Rule), was passed to protect clients from unscrupulous investors.
Title VII, the two agencies say, provides for the comprehensive regulation of swaps and security-based swaps and includes definitions of key terms relating to such regulation. The title of the Dodd-Frank Act "requires the CFTC and the SEC, in consultation with the Board of Governors of the Federal Reserve System, to jointly further define the terms 'swap,' 'security-based swap,' 'swap dealer,' 'security-based swap dealer,' 'major swap participant,' 'major security-based swap participant,' 'eligible contract participant' and 'security-based swap agreement,' " the two agencies say in their release requesting public comments.
Title VII also requires the CFTC and SEC to jointly prescribe regulations regarding "mixed swaps" as necessary to carry out the purposes of Title VII.
The SEC and CFTC also have a series of email links on the two agencies' Web sites to facilitate public comment regarding regulatory reform rulemaking under the Dodd-Frank Act.
Read a story about the SEC and CFTC's meeting on May 6 "Flash Crash" from the archives of InvestmentAdvisor.com.