Top RIA Compliance News Articles for the Week of June 6, 2015

Here’s our top investment adviser compliance articles for the week of June 6, 2015:

1. House Panel to Keep SEC Budget Flat as Lobbyists Lose Hope on User Fees ( Author- Melanie Waddell, ThinkAdvisor)

The House Appropriations Committee has stated that it is planning to keep the SEC budget flat. Two of the RIA industry’s most respected advocates, Neil Simon and Skip Schweiss, share their reactions. Simon admits that the RIA user fee bill continues to lack bipartisan support but that he remains strongly opposed to a third party investment adviser audit solution. Schweiss notes that it may also be time to consider raising the assets under management (AUM) threshold for an RIA firm to register with the SEC effectively shifting more firms down to the state registration level. We’ve previously advocated in favor of raising the AUM registration threshold.

2. What advisers should do after a cyberattack (Author- Alessandra Malito, InvestmentNews)

As cyber-criminals become smarter, cybersecurity becomes increasingly important. Advisers are responsible for protecting sensitive client information and should be prepared for cyber-attacks. Alessandra Malito shares tips for recovering from a security breach.

3. The Perils of Advisor Sole Proprietorships and Single-Member LLCs (Author- Chris Stanley, ThinkAdvisor)

Corporate formalities are often overlooked in a small firm, especially when it comes to the details of a business continuity plan. Chris Stanley explains how such issues may impact RIA business continuity planning, specifically for a sole proprietor advisory firm.

4. Checking Your Vendors’ Cyber-Security Practices (Author- Jennifer Cummings, WealthManagement.com)

It is difficult to control and properly monitor outside vendors that help RIA firms operate more efficiently. Reuters columnist, Jennifer Cummings, takes a look at reasons why advisers may be putting too much trust into their vendors and some security measures they should consider taking.

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5. 8 cyberblunders that shouldn’t have been (Authors- Mason Braswell, Alessandra Malito, InvestmentNews)

Even the smallest mistakes can lead to major consequences when it comes to cybersecurity. Check out this top 8 list of recent mishaps in the financial advisor industry and see how you can learn from them.

6. Finra wants to allow online CE training (Mark Schoeff Jr., InvestmentNews)

The move to online continuing education (CE) training could be more cost-effective and well as time-effective. Reporter, Mark Schoeff Jr., explains why FINRA is pushing to make this happen. As a reminder, there are currently no CE requirements after initially passing the Series 65 exam.

7. New SEC Directive Reveals Key Agency Failing, Critics Say (Author- Ann Marsh, Financial Planning)

Many worry that the SEC does not have sufficient control over the industry. Ann Marsh, Senior Editor of Financial Planning, explores a recent case of a fraudulent advisor and how the agency is failing to protect us.

8. State officials to flag brokers with disciplinary history selling insurance (Mark Schoeff Jr., InvestmentNews)

Brokers who have been barred from the securities industry may soon have a difficult time selling insurance. State officials are developing a program that will flag insurance professionals who have had a disciplinary history. Mark Schoeff Jr. explains the details of the program.