From the October 2010 issue of Investment Advisor • Subscribe!

About Those Other SEC Studies ...

Sidebar to "Dissecting the FSI's Position on Fiduciary"

More On Legal & Compliance

from The Advisor's Professional Library
  • The New and Improved Form ADV Whether an RIA is describing its investment strategy in advertisements or in the new Form ADV Part 2, it is important the firm articulates material risks faced by advisory clients and avoids language that might be construed as a guarantee.
  • Code of Ethics Rule The Code of Ethics Rule, found in Rule 204A-1, uses severe consequences for violation to help ensure investment advisors will do the right thing.  

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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