More On Legal & Compliancefrom The Advisor's Professional Library
- Whistleblowers A whistleblower is any individual providing the SEC with original information related to a possible violation of federal securities law. The Dodd-Frank Act established a whistleblower program that enables the SEC to reward individuals who voluntarily provide such information.
- Do’s and Don’ts of Advisory Contracts In preparation for a compliance exam, securities regulators typically will ask to see copies of an RIAs advisory agreements. An RIA must be able to produce requested contracts and the contracts must comply with applicable SEC or state rules.
Among the litany of studies (close to 17 of them, along with 95 rulemakings) that the SEC is charged with conducting under the Dodd-Frank Act, the advisory industry will be greatly affected by about five of them.
One of those five, the fiduciary study, is already under way with the SEC required to submit its report to Congress in January. Dodd-Frank also stipulated that the Government Accountability Office's (GAO) study of the regulation of the financial planning industry is to be submitted to Congress 180 days after the signing of Dodd-Frank into law, which means lawmakers should have the GAO study by late January.
Financial Planner Study (GAO): To examine the effectiveness of state and federal regulation of financial planners.
Study Concerning Improving Access to Registration Information for BDs and RIAs (SEC): To develop recommendations about improving investor access to registration information on BDs, RIAs, and associated persons of these entities.
Review of BD Auditors (PCAOB): To examine financial audits of broker-dealers.
Investment Adviser Examination Study (SEC): To examine whether an SRO should be designated to oversee RIAs.
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