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Top RIA Compliance News Articles for the Week of June 20, 2015

Jun 26, 2015

Our list of the top registered investment adviser (RIA) compliance and regulatory news articles for the week of June 20, 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 20, 2015:

  1. RIAs could be required to report suspected money laundering (Author- Mason Braswell, InvestmentNews)

A proposal by FinCEN that is expected to be released in July for public comment could mean that RIA firms may be officially required to establish anti-money laundering (AML) programs and report suspicious activity. Mason Braswell takes a look at the history of the proposal and what it could mean for investment advisers in the future.

  1. Mary Schapiro: Why the SEC has a hard time regulating advisers `VIDEO` (Interviewer- Fred Gabriel, InvestmentNews)

Mary Shapiro, former chairwoman of the Securities and Exchange Commission (SEC), explains why roughly 10% of SEC-registered RIA firms are examined each year. She cites the sheer number of advisors coupled with a lack of resources as key drivers of this challenge. She notes that looking to a self regulatory organization (SRO) or 3rd party audits could be potential solutions. Earlier this year, we wrote that we prefer an alternative solution: raising the assets under management threshold for firms to register with the SEC and effectively shifting more advisory firms to be regulated at the state level.

  1. SEC exams target advisers’ retirement-saving guidance (Author- Trevor Hunnicutt, InvestmentNews)

The SEC has announced a multi-year program which will examine the “higher risk” areas of RIA and broker-dealer firms called the Retirement-Targeted Industry Reviews and Examinations (ReTIRE) Initiative . Trevor Hunnicutt gives a breakdown of what the program could entail and which types of firms may be subject to inspection as part of the program. Our blog post from earlier this week also provides further details on the ReTIRE program and its key focus areas.

  1. SEC Suspends Advisory Firm President for Failing to Heed CCO Pleas for Help (Author- Melanie Waddell, ThinkAdvisor)

The SEC has taken action against the president of a Chicago-based RIA firm as he did “not adequately evaluate the effectiveness of its compliance policies and procedures and code of ethics or test the firm’s implementation” despite numerous requests from the firm’s Chief Compliance Officer (CCO). Melanie Waddell of ThinkAdvisor provides more details in this unique case. 

  1. Marketing Tips for Breakaway Advisors (Author- Miriam Rozen, FinancialPlanning)

As part of a 30-day series on going independent, reporter Miriam Rozen gives us a look at how 3 heads of financial advice firms are using their new-found marketing freedom while still balancing the applicable RIA advertising regulatory requirements.

  1. Senate joins House in effort to deny DOL fiduciary funding (Author- Mark Schoeff, Jr., InvestmentNews)

The Department of Labor’s proposed rule to raise investment advice standards for retirement accounts is not only being opposed by the House, but also now by the Senate. Mark Schoeff, Jr. takes a look at where this ongoing battle stands today.

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  1. FPA Advocates Target Washington (Author- Charles Paikert, FinancialPlanning)

The Financial Planning Association (FPA) continues to support the Department of Labor’s proposed fiduciary rule and met with members of Congress and the White House this week to further press the issue. Charles Paikert explains the “comprehensive” comment letter put together by the FPA and how they plan to deal with opponents of the rule. In addition, the FPA continues to support the user fee solution to help increase the number of SEC-registered RIA firms which are examined this year.

  1. Fiduciary Rule Crucial for Protecting Middle Class: DOL Chief (Author- Melanie Waddell, ThinkAdvisor)

As the fight for the passing of the Department of Labor (DOL) fiduciary rule continues, Labor Secretary, Thomas Perez states that this is “one of the most important” measures taken to protect middle-class Americans. The Financial Planning Association (FPA) is also backing the rule by sending a comment letter intended to improve it.

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