More On Legal & Compliancefrom The Advisor's Professional Library
- Privacy Policies and Rules Whether an RIA is SEC or state-registered, the firm must have policies and procedures in effect to protect clients privacy. Policies and procedures should explicitly require an RIA to send out its privacy notice each year.
- Books and Records Rule Thorough and complete books and records enable RIAs to demonstrate that they have fulfilled their fiduciary obligations to clients and complied with applicable rules and regulations.
Rep. Randy Neugebauer, R-Texas, chairman of the Oversight and Investigations Subcommittee of the House Financial Services Committee introduced a bill on Feb. 8, H.R. 557, which would amend the Consumer Financial Protection Act of 2010 and move the Consumer Financial Protection Bureau (CFPB) into the Treasury Department.
As it stands now, the CFPB resides within the purview of the Federal Reserve Board, “without any Congressional oversight or financial accountability guiding the agency’s actions,” Neugebauer said in a statement. “Given the significant and perhaps over-regulating powers the CFPB has been given by the Obama Administration, Congress must have a say on the appropriation of taxpayer money funding this agency’s operation.”
Neugebauer went on to say that “last November’s elections sent a clear message to Washington: Government agencies that spend taxpayer money must show true transparency and must explain the intent of their processes. H.R. 557 will allow Congress to closely examine and oversee the CFPB’s current and future actions.”