More On Legal & Compliancefrom The Advisor's Professional Library
- Where Are We Headed? The ultimate compliance goal is to help ensure that everyone associated with an advisory firm acts ethically at all times. Advisors and RIAs should do the right thing, even when regulators are not looking over their shoulders.
- The Custody Rule and its Ramifications When an RIA takes custody of a clients funds or securities, risk to that individual increases dramatically. Rule 206(4)-2 under the Investment Advisers Act (better known as the Custody Rule), was passed to protect clients from unscrupulous investors.
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.