Each week we’re giving you our weekly report highlighting the top compliance news articles from various industry news publications. We have selected the most relevant and important news articles related to registered investment adviser (RIA) compliance and regulatory issues. Check back each week for the latest list of top stories.
Here’s our top investment adviser compliance articles for the week of September 26, 2015:
- State regulators report advisers’ top five trouble areas for compliance (Author- Mark Schoeff Jr., InvestmentNews)
Following the release of the North American Securities Administrators Association’s (NASAA) 2015 report of investment advisor coordinated exams, the most common areas of regulatory deficiencies for state-registered RIA firms were revealed. Though number of deficiencies per exam have decreased since the last report, books and records-related deficiences won the number one spot for most deficiencies by a wide margin. Mark Schoeff Jr. reports on the results of the biannual report.
- Increase SEC exams of RIAs (InvestmentNews)
Some industry experts believe many brokers are making the switch to the registered investment advisor (RIA) world in exchange for less strict regulations. Susan Axelrod of the Financial Industry Regulatory Authority (FINRA), questions why brokers would want to be examined every year, when they could go nearly 10 years without being examined as an RIA? Of course, this editorial is strictly an opinion expressed by Ms. Axelrod. It’s important to note that as RIA compliance consultants, we continue to support a proposal to raise the assets under management (AUM) threshold for advisory firms to register with the Securities and Exchange (SEC) commission.
- Committee Passes Bill Aimed at Blocking DOL Fiduciary Rule (Author- Megan Leonhardt, WealthManagement.com)
The House Financial Services Committee succeeded in passing a bill which would delay the Department of Labor’s (DOL) fiduciary rule. This bill will now next be voted on the house floor. With this legislation, the DOL would be forced to wait to release their rule until the Securities and Exchange Commission (SEC) implements their own for brokers. Megan Leonhardt reports on the SEC’s response to the legislation and their time line.
- DOL official promises changes to fiduciary rule based on avalanche of comments (Author- Mark Schoeff Jr., InvestmentNews)
After thousands of comment letters were submitted to the DOL, it has been confirmed that the final fiduciary rule will implement some of the feedback. Producing ten times more comment letters than the first proposal, the current proposal is aimed to raise investment advice standards for retirement accounts. Mark Schoeff Jr. gives us the details regarding the potential changes to the DOL’s final rule.
- SEC Outlines Busy Agenda for RIAs (Author- Kenneth Corbin, FinancialPlanning)
SEC Chairman Mary Jo White announced plans to expand the oversight of advisors and asset managers, specifically citing the potential of 3rd party RIA examinations and a uniform fiduciary standard. Kenneth Corbin reports on the many plans that were discussed at the SEC conference celebrating the 75th anniversary of 1940 Investment Company Act and Investment Advisers Act.
- SEC Chair White Urges Collaboration Between Regulators, Industry (Author- Megan Leonhardt, WealthManagement.com)
SEC Chairwoman Mary Jo White is stressing the importance of collaboration between the financial industry and regulators. White compared the current state of affairs to the original issues that led to the implementation of the Advisor Act. Megan Leonhardt reports on Chairwoman White’s goals for the industry.
Be sure to check back next Friday for next week’s top articles!