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 August 1, 2015:
- Hackers have a backdoor way into your system (Author- Alessandra Malito, InvestmentNews)
While the use of third-party vendors increases, it has become even more imperative that a firm has top notch cyber security practices. Alessandra Malito provides some insider tips on how an investment advisory firm can choose the right company to manage its needs and keep its clients’ sensitive information protected.
- Social Media Amid FINRA Rules (Author- Allison Livezey, WealthManagement.com)
A new study shows that an increase in social media may correlate with an increase in business for investment advisors. The benefits of using Facebook, LinkedIn or twitter can be great, but you must first assess the risks. A recent case citing social media posts “containing exaggerated, misleading and/or unwarranted statements” has proven that the Financial Industry Regulatory Authority (FINRA), and other regulators, will crack down on those who do not follow the rules and regulations related to social media.
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- Judge denies SEC’s motion to dismiss case over in-house panels (Author- Hazel Bradford, InvestmentNews)
US District Judge Richard Berman recently ruled that a challenge to the Securities and Exchange Commission (SEC) practice of trying enforcement cases in front of administrative judges appointed by the SEC may proceed. Hazel Bradford provides additional details.
- Camardas Will Appeal CFP Board Lawsuit Dismissal (Author- Ann Marsh, FinancialPlanning)
This ongoing legal saga continues as the Camardas have announced that they intend to appeal U.S. District Court Judge Richard’s decision to dismiss its case against the CFP Board. This case raises interesting questions around whether a court will intervene in the internal affairs of a voluntary organization. Senior Editor Ann Marsh provides more details.
- Advisor Warning: Vet Tech Vendors Carefully (Author- Kenneth Corbin, FinancialPlanning)
In another piece raising information security and compliance issues when registered investment adviser (RIA) firms with third party technology vendors operating in the cloud, Kenneth Corbin discusses that firms should be performing proper due diligence on all such third party firms including reviewing how sensitive data will be secured and whether a proper business continuity plan is in place.
Be sure to check back next Friday for next week’s top articles!