More On Legal & Compliancefrom The Advisor's Professional Library
- Suitability and Fiduciary Duty Recommending suitable investments is more than just a regulatory obligation. Many investors bring cases claiming lack of suitability, so RIAs must continuously put the onus on clients to notify the advisor of changes in their financial situation.
- Disaster Recovery Plans and Succession Planning RIAs owe a fiduciary duty to clients to prepare for disasters and other contingencies. If an RIA does not have a disaster recovery plan, clients financial well-being may be jeopardized. RIAs should also engage in succession planning, ensuring a smooth transaction if an owner or principal leaves.
The Securities and Exchange Commission and the Financial Industry Regulatory Authority announced Tuesday the opening of registration for the regional compliance outreach programs for broker-dealers beginning in the spring that will take place in Denver, Los Angeles, Chicago, Miami, Philadelphia and New York.
The SEC’s Office of Compliance Inspections and Examinations, in coordination with the SEC’s Division of Trading and Markets, is partnering with FINRA to sponsor the programs, which will start in April in Denver and Los Angeles. The other outreach programs in Chicago, Philadelphia, Miami and New York will take place in June.
“These regional programs supplement our national compliance outreach program for broker-dealers by allowing critical regional interaction between staff from the SEC and FINRA and personnel from registered broker-dealer firms operating in the region,” said Kevin Goodman, national associate director of the SEC’s broker-dealer examination program, in a statement. “This local collaboration is an important aspect of our overall outreach efforts.”
FINRA senior vice president for member relations and education Chip Jones added in the statement that FINRA “views these programs as unique learning opportunities because they provide compliance professionals across the country with the opportunity to interact with FINRA and SEC staff. These outreach programs also provide us with an opportunity to listen to the firms regarding their day-to-day compliance initiatives.”
Andrew Bowden, director of the SEC’s National Examination Program, added that the compliance outreach program “is an important part of the commission’s and FINRA’s initiative to share information with the industry about observed deficiencies and control weaknesses and to assist firms in assessing and enhancing their compliance.”
There is no cost to attend the regional programs. Registration is open to all risk, audit, legal and compliance professionals employed by broker-dealers.