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Top RIA Compliance News Articles for the Week of November 28, 2015

Dec 04, 2015

Our list of the top registered investment adviser (RIA) compliance and regulatory news articles for the week of November 28, 2015.

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 November 28, 2015:

  1. Legislation to replace DOL fiduciary could be tied to must-pass bill to keep government open (Author- Mark Schoeff Jr., InvestmentNews)

The Department of Labor’s (DOL) pending fiduciary rule to raise investment advice standards for retirement accounts could be undone if new legislation is introduced in the House to limit the DOL’s ability to pass such a rule. It’s possible this new legislation may be included in the omnibus government funding bill. Mark Schoeff Jr. reports on the details and what those on both sides of this issue are saying.

  1. Can Robo-Advisors Really Be Fiduciaries? (Author- Melanie Waddell, ThinkAdvisor)

There have been debates on how robo-advisors should be regulated, since they did not exist when current laws were put into place. Kara Stein, a Securities and Exchange Commission (SEC) Commissioner, is asking whether or not robos can abide by the existing fiduciary laws and whether such laws need to be revised? David Lyon, CEO of Oranj, argues that robo-advisors should instead register as brokers. Melanie Waddell provides more coverage on the various industry expert opinions.

  1. Third-Party Advisor Audits Could Be a Disaster: Norm Champ (Author- Melanie Waddell, ThinkAdvisor)

The Securities and Exchange Commission (SEC) continues to consider the third-party audit option to increase the frequency of RIA examinations. As discussed in last week’s RIA compliance news recap, Norm Champ, the former head of the SEC’s Division of Investment Management, recently wrote in a Wall Street Journal editorial that he fears that this will place a costly burden on advisors and will have other unintended consequences. Melanie Waddell gives us more details and perspective on Mr. Champ’s editorial.

  1. FINRA Expedites Public Disclosure of Advisor Terminations (Author- Megan Leonhardt, WealthManagement.com)

The Financial Industry Regulatory Authority (FINRA) plan to reduce the waiting period for publishing the details of advisor terminations was approved and will go into effect starting December 12th. The new waiting period which will now be 3 days, instead of the previous 15 days, could be beneficial for the public, but perhaps not for advisors according to some. Megan Leonhardt explains the reasons for the waiting period change and what it will mean for the industry.

Be sure to check back next Friday for next week’s top articles!