More On Legal & Compliancefrom The Advisor's Professional Library
- Client Communication and Miscommunication RIA policies and procedures must specify what type of communications should be retained. The safest course of action is for RIAs to retain all communicationsto clients, from clients, and about client accounts. To comply with fiduciary obligations, communications must be thorough and not mislead.
- Best Practices for Working with Senior Investors Securities examiners deal harshly with RIAs that do not fulfill their fiduciary obligations toward senior investors, as the SEC and state securities regulators view older investors as particularly vulnerable and in need of protection.
At a hearing conducted Tuesday by the Senate Committee on Banking, Housing, and Urban Affairs, the committee's Democratic chairman Tim Johnson, D-S.D., (left) said that tearing down the Dodd-Frank reform law of 2010 "would be dangerous and irresponsible."
Reuters reported that the hearing focusedon the independent Federal Crisis Inquiry Commission (FCIC) and its work; the bipartisan commission could not issue a unified report after its work was done, although individual members released their own findings.
Phil Angelides defended the work of the FCIC, saying that it had conducted a thorough inquiry, but Republicans have been critical of the commission. Sen. Richard Shelby, R-Ala., said the banking committee should have conducted its own investigation instead of assigning it to the FCIC. He also criticized Dodd-Frank, which Republicans have been opposed to. While Dodd-Frank was created in response to the financial crisis, the FCIC findings did not appear until after Dodd-Frank was approved.
At the hearing, Johnson said, "We cannot allow Dodd-Frank to be dismantled. We simply cannot afford to go back to the old financial system that destroyed millions of jobs and cost the economy trillions of dollars."
Shelby said in the report, "While it is unfortunate that the commission was unable to reach a bipartisan consensus on its final report, it is more unfortunate that, in the end, it did not matter."