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 15, 2015:
- Vanguard login flap showcases battle of cybersecurity vs. convenience (Author- Alessandra Malito, InvestmentNews)
While Alessandra Malito’s piece focuses on Vanguard, her report highlights the constant tension between cyber security precautions and the user experience for both employees and clients of firms of all sizes. We frequently see employees of firms push back when new information security measures such as two-factor authentication are implemented, but unfortunately registered investment advisers (RIA) firms now operate in a world in which proper security measures, even if inconvenient, are an absolute necessity.
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- Faulty Access Controls Led to Morgan Stanley Data Breach: FTC (Author- Andy Peters, FinancialPlanning)
The cause of Morgan Stanley’s data breach has finally been identified as improperly configured access controls that allowed an advisor to access sensitive client information across the entire firm. This issue impacts RIA firms of all sizes and firms need to be extremely vigilant in ensuring that only the proper staff members have full administrative or access privileges when it comes to the firm’s technology systems.
- DOL Fiduciary Rule Will Cost Firms $3.9 Billiob: FSI Study (Author- Melanie Waddell, ThinkAdvisor)
A new report has been conducted by the Financial Services Institute (FSI) stating that the Department of Labor’s (DOL) Fiduciary Rule will cost the financial services industry close to $3.9 billion to implement. FSI predicts small broker-dealer firms may be forced out of business, however many in the RIA industry are skeptical given that many small advisory firms successfully serve the retirement market today. Melanie Waddell provides a detailed report.
- SEC Settlement Demonstrates the Value of the Fiduciary Standard (Author- Dan Solin, HuffingtonPost)
The fight over the DOLs Fiduciary rule shows no signs of slowing down and most of opinions making headlines come from those in opposition. Author Dan Solin, explains why he feels investors should be supporting the Fiduciary Rule to benefit from being served by more RIA firms.
- CFA Criticizes 3 Industry Arguments Against Proposed DOL Fiduciary Rule (Author- Marlene Y. Satter, BenefitsPro)
The Consumer Federation of America (CFA) is taking a stance against those in opposition of the DOLs fiduciary proposal. Barbara Roper of the CFA is shooting down three different arguments, as she feels they are just the last efforts to hold onto a practice that has been quite profitable to brokers while harmful to individual investors. Marlene Y. Satter breaks down the arguments.
Be sure to check back next Friday for next week’s top articles!