Top RIA Compliance News Articles for the Week of April 29, 2017

1. Senate Confirms Jay Clayton as SEC Chairman (Author- Melanie Waddell, ThinkAdvisor)

Think Advisor’s Melanie Waddell reports, “the full Senate confirmed Jay Clayton as chairman of the Securities and Exchange Commission by a 61-37 vote.” According to her article “The Industry groups were quick to applaud the former Sullivan & Cromwell partner’s appointment, with most expressing their view that Clayton should put adopting a uniform fiduciary rule (also known as a best interest standard) for brokers and advisors at the top of his priorities.” Industry representatives provide quotes to what they hope Clayton will prioritize as SEC chairman and his intentions in Waddell’s article.

2. 2 Ways For Advisers to Prepare For Fiduciary Implementation (Author- Andrew Shilling, Financial Planning)

According to Financial Planning reporter, Andrew Shilling, “Some advisers may have breathed a sigh of relief when the fiduciary rule was delayed, but ERISA attorney Fred Reish warns against letting this extra grace period go to waste.” Reish also believes although the DOL fiduciary rule is presently delayed, there shouldn’t be too many changes and advisors should be taking “actionable steps toward compliance.” Reish also predicts a timeline of how long it may take for firms to fully comply with the new rules and anticipates that “over the next four or five years we should begin to see that take effect.”

3. GOP Prepares to Beat Back Dem Effort to Save Fiduciary Rule (Author- Ted Knutson, Financial Advisor)

Financial Advisor’s Ted Knutson reports that House Financial Services Committee Republicans continue to oppose Democratic efforts to save the DOL fiduciary rule.  Knutson states “The Republicans argued in force to keep a provision in the Financial CHOICE Act—legislation aimed at undoing the Dodd-Frank financial reform act—that would kill the rule.” Democrats tried to delete this, however Republicans are reportedly prepared to “force a committee vote to kill their amendment to the CHOICE Act.” 

4. Viewing Succession Plans Through a New Lens: Growth (Author- Dave Lindorff, Financial Planning)

As reported by Dave Lindorff, contributing writer for Financial Planning, Rick Rummage, chief executive and founder of adviser training firm, The Rummage Group, claims 80% of advisers do not have a succession plan. Lindorff addresses why so many advisors do not take the time to develop a succession plan. David Grau, Sr. president and founder of FP Transitions, believes people don’t plan for succession because they think it means they are preparing to sell their business. Grau claims succession planning is less about a potential sale and more about “building the business so that it is something that lasts.”

5. House Banking Panel Passes Bill to Undo U.S. Financial Crisis Rules (Author- Pete Schroeder, Wealth Management)

As a follow up to Knutson’s article, Pete Schroeder of Wealth Management reports “A House banking panel on Thursday passed a controversial bill that would drastically change how the U.S. government regulates the financial sector.” Schroeder relays that the bill “would eliminate significant parts of the Dodd-Frank financial reform law and place new restrictions on regulators monitoring Wall Street.” The proposed bill also repeals part of the DOL rule set to go into effect on June 9, 2017. Check out Schroeder’s article for more details on how this bill could impact the RIA industry.

Don’t forget to check out last week’s top RIA compliance news articles on the DOL fiduciary rule. Be sure to check back next Friday for next week’s top articles!