Top RIA Compliance News Articles for the Week of June 17, 2017

1. How SEC, FINRA Exams Could Change Under Trump (Author- Tobias Salinger, Financial Planning)

Tobias Salinger of Financial Planning reports that compliance experts are saying, “President Trump’s anti-regulation agenda will yield fewer but more focused SEC and FINRA examinations.” Firms can be well prepared by staying ahead of examiners and ensuring their policies are up to date and focused on agency “hot topics.” These topics are discussed in Salinger’s article with a major focus on cybersecurity. In addition, RIA firms need to ensure that deficiencies from prior exams are properly addressed and that key risks have been identified and mitigated.

2. Interesting Angles on the DOL’s Fiduciary Rule #52 (Author- Fred Reish, Fredreish.com)

Fred Reish, one of our top 5 DOL fiduciary rule experts to follow, published his 52nd article about his observations on the DOL fiduciary rule. In this particular article, he discusses what happens now that the June 9 fiduciary rule has gone into effect and the “transition” transaction exemptions that are now effective. Reish informs that the transition exemptions will only be applicable until December 31, which is when full exemptions will apply. However, he believes the DOL is likely to extend the transition period past December 31. Reish writes, “I expect that we will hear, in August or September, that the transition period is being extended.”

3. 3 Reasons DOL Fiduciary Rule Will Stay Intact: ERISA Attorney Wagner (Author- Melanie Waddell, ThinkAdvisor)

Marcia Wagner, Managing Director of the Wagner Law Group, believes there are three reasons why the DOL fiduciary rule will live on according to Think Advisor reporter Melanie Waddell. On June 9, the DOL rule became effective as well as expanded the definition of what being a fiduciary entails. The rule is presently scheduled to be come fully applicable as of January 1, 2018. Wagner spoke at the Financial Planning Association’s recently annual lobbying day in Washington. Read about her reasoning behind why she believes the rule will remain in “substantially similar condition” in Waddell’s article.

4. CFP Board Proposes Tightening Fiduciary Requirements: ‘Huge Step’ or ‘Double Standard’? (Author- Ann Marsh, Financial Planning)

 “The CFP Board has proposed sweeping changes to its ethics rules and standards of conduct,” informs Ann Marsh, Financial Planning reporter. The board has reportedly released a 17-page proposal including a new ethics code and revised standard of conduct. The board will be taking comments at eight meetings over the next two months. Mixed opinions are currently circulating. Commission sales is a topic also covered in the proposed changes. 

5. Trump Said Likely to Name Hester Peirce as SEC Commissioner (Author- Ben Bain and Elizabeth Dexheimer, Bloomberg)

Industry reporters Ben Bain and Elizabeth Dexheimer bring us this Bloomberg article on the fate of the next likely Securities and Exchange Commissioner. As quoted in the article, “Hester Pierce, a former U.S. SEC Counsel and Senate aid, is the Trump administration’s likely choice to fill the open Republican seat at the Wall Street regulator.” Her nomination is said to be paired to another vacant seat by a candidate backed by Senate Democrats. Pierce was originally selected by President Barack Obama in 2015 but the nomination was delayed. 

Don’t forget to check out last week’s top RIA compliance news articles on the DOL fiduciary rule and upcoming Form ADV changes. Be sure to check back next Friday for next week’s top articles!