More On Legal & Compliancefrom The Advisor's Professional Library
- The Few and the Proud: Chief Compliance Officers CCOs make significant contributions to success of an RIA, designing and implementing compliance programs that prevent, detect and correct securities law violations. When major compliance problems occur at firms, CCOs will likely receive regulatory consequences.
- Suitability and Fiduciary Duty Recommending suitable investments is more than just a regulatory obligation. Many investors bring cases claiming lack of suitability, so RIAs must continuously put the onus on clients to notify the advisor of changes in their financial situation.
Senate Democrats unveiled a new continuing resolution spending bill on Sunday evening, H.R. 3082--the Full-Year Continuing Appropriations Act, 2011--and plans to vote on the measure on Tuesday. Senate Majority Leader Harry Reid, D-Nev., invoked cloture Sunday night on the new continuing resolution that would keep the government running until March 4, 2011. Reid’s original $1.2 trillion omnibus spending bill was defeated on Dec. 16 due to lack of Republican support and included measures that would have stretched until Sept. 30, 2011.
The new continuing resolution contains no specific language regarding the Securities and Exchange Commission (SEC), which means the SEC remains under its FY 2010 budget through March 4.
Former Congressman Bill Frenzel (R-Minn.) predicted in an interview Dec. 17 that following the failure of the omnibus appropriations bill that it would leave it to the 112th Congress to address the Federal budget.
Under the original spending bill, the SEC would have gotten an increase of $205 million, or 18%, over the agency’s FY 2010 budget—putting the agency’s total budget at $1.3 billion. The boost would have helped the agency implement the scores of new rules under Dodd-Frank, and also help the agency with its oversight and enforcement duties as well as give needed funds for technology updates.
Despite the fact that the SEC was allocated more funding under Dodd-Frank, the Commission listed on its website in December its plans to defer launching a number of offices created under Dodd-Frank, like the whistleblower, credit ratings agency, investor advocacy, and municipal securities offices, due to “budget uncertainty.”
That uncertainty has been a concern of SEC Chairman Mary Schapiro since at least last November, IAA Executive Director David Tittsworth said in a Dec. 16 interview in which he discussed likely regulatory and legislative developments following passage of the compromise tax bill by the House on Dec. 16.