More On Legal & Compliancefrom The Advisor's Professional Library
- Trading Practices and Errors When SEC-registered investment advisors conduct annual audits of firm policies and procedures, they should pay close attention to trading practices. Though usually not required to, state-registered advisors should look at their trading practices and revise policies that do not fully protect clients.
- Registration Requirements for Investment Advisor Representatives (IARs) When individuals launch an advisory firm, they must avoid marketing themselves or the firm as investment advisors before they are properly approved and registered. Otherwise, they are subject to severe penalties.
The House Financial Services Committee’s Capital Market Subcommittee plans to hold a hearing Sept. 18 on the Securities and Exchange Commission’s proposed rules governing money-market funds.
The SEC in early June proposed two alternative reforms to money funds.
First, to require that all institutional prime money-market funds operate with a floating net asset value (NAV). Second, to employ a “fees-and-gates” approach in which a nongovernment money fund imposes a 2% liquidity fee if the fund’s weekly liquid assets fall below 15% of its total assets.
SEC Chairwoman Mary Jo White (right) said at the time that the two reforms could be adopted separately or combined into a single reform package.
The coment period on the money-market fund proposal expires Sept. 17.
Other hearings to be held by the committee in September include:
Sep. 10 – The Oversight and Investigations Subcommittee will hold a hearing on reducing waste, fraud and abuse in housing programs and examine recommendations made by the inspector general of the Department of Housing and Urban Development.
Sept. 11 – The Monetary Policy and Trade Subcommittee will hold a hearing on the history of the Federal Reserve.
Sept. 12 – The Financial Services Committee will hear from Consumer Financial Protection Bureau (CFPB) Director Richard Cordray during a hearing on the CFPB’s semiannual report.
Sept. 19 – The Financial Services Committee will hold a hearing on the Terrorism Risk Insurance Act, which is currently set to expire on Dec. 31, 2014.
Check out Are You Ready for Rising Rates? on ThinkAdvisor.