More On Legal & Compliancefrom The Advisor's Professional Library
- Registration Requirements for Investment Advisor Representatives (IARs) When individuals launch an advisory firm, they must avoid marketing themselves or the firm as investment advisors before they are properly approved and registered. Otherwise, they are subject to severe penalties.
- 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.
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.”