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.
- Advertising Advisor Services and Credentials Section 206 of the Investment Advisers Act contains the anti-fraud provision of the statute and ensures that RIAs advertising and marketing practices are consistent with the fiduciary duty owed to clients and prospective clients.
AdvisorOne Wealth Editor in Chief Kathleen McBride has closely followed the Securities and Exchange Commission's study on whether to extend a fiduciary standard to all advice givers in her series, SEC and the Fiduciary Study.
Extending the standard beyond RIAs could signal a seismic shift in how advice is provided to investors, changing the way brokers and investment advisors conduct their businesses, and what protections the SEC is willing to institute for investors. Not since the Securities Exchange Act of 1934 and the Investment Advisers Act of 1940 has there been more potential for re-drawing the rules that govern conduct of brokers and investment advisors toward customers and clients.
Click through for more on the long road to resolution over whether and how the fiduciary standard should be applied.
In late January, the SEC delivered to Congress its six-month report, “Study Regarding Obligations of Brokers, Dealers, and Investment Advisers,” mandated in the Dodd-Frank Act. The report is the next step in the long debate over whether the fiduciary standard should apply to all who provide investment and financial advice to individual investors.
Read Part 1 of the SEC and the Fiduciary Study series.
On Jan. 22, the staff of the SEC delivered to Congress a report called the “Study on Investment Advisors and Broker-Dealers” that was mandated under Section 913 of 2010’s Dodd-Frank financial services reform law. The report is the most significant, if not final, step in the long debate over whether the fiduciary standard should apply to all who provide investment and financial advice to individual investors.
Read Part 2 of the SEC and the Fiduciary Study series.
The SEC’s Study on Investment Advisers and Broker-Dealers has by now been digested by the legions of followers of both sides of the debate on extending the fiduciary standard to brokers who provide advice. It seems that now the debate is not about whether to extend, but rather how to extend fiduciary duty to all who advise individuals.
Read Part 3 of the SEC and the Fiduciary Study series.