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 October 31, 2015:
- Advisors’ Three Biggest Cybersecurity Weaknesses (Author- Ryan W. Neal, WealthManagement.com)
As the Securities and Exchange Commission (SEC) gears up for the next round of cybersecurity exams, a third-party information technology consulting firm, External IT, has released a white paper aimed at preparing financial services firms for testing. The white paper identifies the three key areas of cybersecurity weakness that advisors should focus on. Ryan W. Neal gives us the details on the report.
- Morningstar’s Wong: DOL Rule Could Cause Advisors to Exit (Author- Diana Britton, WealthManagement.com)
WealthManagement.com spoke with Morningstar’s Equity Analyst, Michael Wong, who feels that the Department of Labor’s (DOL) fiduciary rule could lead to a decrease in the number of advisors (or perhaps more traditional brokers) in the US. Read the interview for Wong’s thoughts on the rule, main takeaways from Morningstar’s report, and more.
- SEC Clarifies RIAs’ Cybersecurity Obligations (Thomas D. Giachetti, ThinkAdvisor)
18 months after the SEC released its cybersecurity Risk Alert, registered investment adviser (RIA) firm are still having trouble getting it right. Most of the confusion has been over protecting client information from data breaches and hackers. Many of these questions have since been addressed, along with the announcement of another Risk Alert. Thomas Giachetti discusses the details of the new Risk Alert and his key takeaways.
- 12 predictions about what the Labor Department’s fiduciary rule will look like when implemented (Author- Blaine F. Aikin, InvestmentNews)
As the fight continues on over the DOL’s fiduciary rule, advisers should rest assure that the rule will remain mostly intact. After allowing much time for comment letters, the DOL appears to be taking every precaution to avoid mistakes and get it right. Blaine Aikin offers his 12 predictions about what the future holds when/if the rule passes.
- Lawmakers Want Yet Another Comment Period on DOL Fiduciary Rule (Author- Melanie Waddell, ThinkAdvisor)
In more fiduciary rule news, US House of Representatives lawmakers are requesting an additional 15-30 day comment period before the DOL finalizes the rule. They assure that the extra comment period will not derail plans of a finalized rule by the end of 2016. In a letter penned to DOL, the House Rules and Education and Workforce committees stated the importance of a supplemental comment period. Melanie Waddell reports on arguments for and against this new development.
Be sure to check back next Friday for next week’s top articles!