More On Legal & Compliancefrom The Advisor's Professional Library
- RIAs and Customer Identification Just as RIAs owe a duty to diligently protect their clients privacy and guard against theft, firms also play a vital role in customer identification. Although RIAs are not subject to an anti-money laundering rule, securities regulators expect advisors to address these issues in their policies and procedures.
- Differences Between State and SEC Regulation of Investment Advisors States may impose licensing or registration requirements on IARs doing business in their jurisdiction, even if the IAR works for an SEC-registered firm. States may investigate and prosecute fraud by any IAR in their jurisdiction, even if the individual works for an SEC-registered firm.
The Securities and Exchange Commission announced Thursday that it has reopened the comment period for 30 days on its proposed amendments to its net capital, customer protection, books and records, and notification rules for broker-dealers.
The proposed rule amendments are designed to update the financial responsibility rules for broker-dealers and make certain technical amendments. The commission issued the proposed amendments on March 9, 2007, and the public comment period on the proposal closed on June 18, 2007.
The commission says that it did not act on the rule amendments it proposed in 2007. “Given economic events, regulatory developments and passage of time since then, as well as the continuing public interest in this area, the commission believes that it would be appropriate to seek additional public comment on the proposed rule amendments,” the SEC said.