More On Legal & Compliancefrom The Advisor's Professional Library
- Risk-Based Oversight of Investment Advisors Even if the SEC had a larger budget and more resources, it is doubtful that the Commission would have the resources to regularly examine all RIAs. Therefore, the SEC is likely to continue relying on risk-based oversight to fulfill its mission of protecting investors.
- 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.
Senate Republicans are urging regulators to slow down implementation of Dodd-Frank by extending the comment periods on their rule proposals and conducting more “rigorous” analysis on those rules—including one on putting brokers under a fiduciary standard of care.
As Sen. Tim Johnson, D-S.D., chairman of the Senate Banking, Housing, and Urban Affairs Committee conducts his first hearing on Thursday on regulators’ implementation of Dodd-Frank, Senate Republicans sent a letter on Tuesday to all the top regulators asking that they “not sacrifice quality and fairness in exchange for speed,” in fulfilling their statutory mandate under Dodd-Frank.
The letter was sent to Federal Reserve Chairman Ben Bernanke; Securities and Exchange Commission (SEC) Chairman Mary Schapiro; Gary Gensler, chairman of the Commodities Futures Trading Commission (CFTC); Sheila Bair, chairman of the Federal Deposit Insurance Corp. (FDIC); and John Walsh, acting director of the Comptroller of the Currency.
The Republican Senators, including Richard Shelby, R-Ala., ranking minority member on the committee, and Michael Crapo, R-Idaho, asked regulators to extend their comment periods on proposed rules under Dodd-Frank from 40 days to 60.
The Senators pointed to the request for a more rigorous economic analysis raised by SEC Commissioners Kathleen Casey and Troy Paredes in the SEC’s study under Section 913 of Dodd-Frank, regarding putting brokers under a fiduciary standard of care.