More On Legal & Compliancefrom 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.
- RIAs and Customer Identification Just as RIAs owe a duty to diligently protect their clients privacy and guard against theft, firms also play a vital role in customer identification. Although RIAs are not subject to an anti-money laundering rule, securities regulators expect advisors to address these issues in their policies and procedures.
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.”