More On Legal & Compliancefrom The Advisor's Professional Library
- 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.
- Client Commission Practices and Soft Dollars RIAs should always evaluate whether the products and services they receive from broker-dealers are appropriate. The SEC suggested that an RIAs failure to stay within the scope of the Section 28(e) safe harbor may violate the advisors fiduciary duty to clients, so RIAs must evaluate their soft dollar relationships on a regular basis to ensure they are disclosed properly and that they do not negatively impact the best execution of clients transactions.
Both Democrats and Republicans are committed to raising the debt ceiling before the Aug. 2 deadline, said U.S. Assistant Secretary Mary Miller at a Securities Industry and Financial Markets Association (SIFMA) regulatory reform summit in New York on Wednesday.
“Both parties recognize the debt limit must be raised by Aug. 2,” said Miller during a question-and-answer session following her prepared remarks about the Dodd-Frank Act and regulatory reform just one week before the first anniversary before the act’s passage.
Legislators’ goal is to lift the ceiling well ahead of the Aug. 2 deadline, Miller added.
Asked if foreign investors have been avoiding the U.S. Treasury market during Washington’s heated budget debates this summer, Miller replied that while she would not go into specifics, “at a high level, we have not seen any change in the behavior of investors.”
In her prepared remarks, Miller said that in order for the U.S. to remain a desirable place to invest, a regulatory framework must be put in place to restore integrity to the financial markets and win the trust and confidence of Americans and global investors.
“The reputation of our financial system is at stake,” Miller said. “Scaling back or repealing major parts of the Dodd-Frank Act, or not providing regulators with the funds they need to implement the act, will leave our economy exposed to a cycle of collapses and crises, with potentially devastating repercussions for businesses, for financial markets, and for all Americans. In the absence of the protections that the Dodd-Frank Act puts in place, our system descended into a crisis that has left deep scars on our nation.”