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Top RIA Compliance News Articles for the Week of June 27, 2015

Jul 03, 2015

Our list of the top registered investment adviser (RIA) compliance and regulatory news articles for the week of June 27, 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 June 27, 2015:

  1. Custodians’ payments to RIAs for fund picks raise eyebrows (Author- Mason Braswell, InvestmentNews)

This is an issue that has come in and out of focus over the years. In the latest look at this controversial practice, Mason Braswell takes a look at the problems associated with registered investment adviser (RIA) firms and “shareholder services fees.”

  1. State regulators work on uniform approach to elder financial abuse ( Author- Mark Schoeff Jr., InvestmentNews)

It is no surprise that senior citizens are a prime target for scams, and now state securities regulators are taking action to protect them. Three states have even implemented laws that target elder abuse. Mark Schoeff Jr. explains the hope behind the new effort.

  1. Who is watching the financial advisory industry? (Author- Andrew Osterland, CNBC)

The lack of investment adviser examinations performed by the SEC has been scrutinized time and time again. Andrew Osterland gives the run down on all the options on the table regarding examinations including potentially raising the assets under management (AUM) to register an RIA firm with the SEC.

  1. DoL Fiduciary Critics Aim to Narrow Definition (Author- Kenneth Corbin, FinancialPlanning)

The fight against the Department of Labor’s fiduciary proposal continues on as those who oppose it try to narrow its definition.

  1. More advisers simulating SEC exams to expose gaps before regulators come knocking (Author- Liz Skinner, InvestmentNews)

In just two years, RIA firms have increased their use of mock audits by 41%. Advisory firms have found that the cost is a small price to pay, considering the significant financial and reputational costs of regulator fines.

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  1. SEC members split on whether agency unfairly targets compliance officers (Author- Mark Schoeff Jr., InvestmentNews)

Following recent cases of the Chief Compliance Officer (CCO) being individually targeted for a firm’s compliance failures, Commissioner Daniel Gallagher is voicing his concerns. He argues the rules too vague, making it too easy for compliance personnel to get in trouble. On the other hand, fellow Commissioner Luis Aguilar expresses a different opinion on this topic.

  1. Backing up data in the cloud essential to advisers’ disaster-recovery planning (Author- Alessandra Malito, InvestmentNews)

Many advisors don’t fully understand the importance of the cloud and its back up capabilities until disaster strikes. That’s what happened to an advisor in New York this summer. Alessandra Malito takes a look at how the cloud saved the firm.

  1. Cybersecurity Tops Advisors’ Compliance Worries: Poll (Author- Melanie Waddell, ThinkAdvisor)

Cybersecurity has become a top concern for advisors in the country according to a poll by the Investment Adviser Association. Do you share the same compliance worries as the rest of the advisors in the country?

  1. FINRA Earnings Surge as Fines Double (Author- Bernice Napach, ThinkAdvisor)

A signifcant increase in Financial Industry Regulatory Authority (FINRA) fines has allowed the organizations to double over the past year. Bernice Napach explains where all this money is coming from and what FINRA plans do with it.

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