More On Legal & Compliancefrom The Advisor's Professional Library
- 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.
- Anti-Fraud Provisions of the Investment Advisers Act RIAs and IARs should view themselves as fiduciaries at all times, whether they meet the legal definition or not. Deviating from the fiduciary standard of full disclosure while courting clients may cause the advisor significant problems.
On Wednesday, the House Financial Services Committee voted to send on three pieces of legislation that are designed to loosen derivatives rules put in place by the Dodd-Frank Wall Street Reform and Consumer Protection Act.
They are H.R. 2586, the Swap Execution Facility Clarification Act; H.R. 2682, the Business Risk Mitigation and Price Stabilization Act; and H.R. 2779, to exempt inter-affiliate swaps from certain regulatory requirements put in place by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The three bills will now move on for a full House vote.
Rep. Barney Frank, D-Mass., ranking Democrat on the House Financial Services Committee who co-authored the landmark Dodd-Frank financial reform legislation, had announced Monday that he would not seek reelection in 2012, and will retire after completion of his term next December.
H.R. 2586, according to the committee’s website, directs the CFTC and SEC to devise rules for swap execution facilities and security-based swap execution facilities (SEFs) to carry out congressional intent for SEFs to serve as an alternative to exchanges and to provide an execution facility for illiquid or thinly traded swaps.
H.R. 2682 clarifies the derivatives title of the Dodd-Frank Act by reconfirming the end user exemption from margin and capital requirements, and defines end users as firms and companies that use derivatives to manage their risks and not to speculate.
H.R. 2779 clarifies the Dodd-Frank Act derivatives title and exempts inter-affiliate swaps from the margin, clearing and reporting requirements of the Dodd-Frank Act.
The Securities Industry and Financial Markets Association (SIFMA) issued a statement in support of the three measures on Wednesday, and urged full House and Senate approval.