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.
- Code of Ethics Rule The Code of Ethics Rule, found in Rule 204A-1, uses severe consequences for violation to help ensure investment advisors will do the right thing.
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.