Top RIA Compliance News Articles for the Week of January 28, 2017

1. DOL fiduciary rule delayed 180 days by Trump directive (Author- Mark Schoeff Jr., InvestmentNews)

Mark Schoeff Jr. has the latest on today’s significant announcement from the Trump administration which delays the effective day of the DOL fiduciary rule. Schoeff writes that, “President Donald Trump delayed the implementation of the Labor Department investment-advice rule by six months in a directive issued on Friday, casting doubt on its viability just as it was about to be put into practice.” A number of perspectives, both supportive and against, are shared in this piece. However, Schoeff does note that, “it’s not clear whether the delay itself would be subject to a notice and comment period or whether that can be avoided because the delay was put in the context of pending litigation. Supporters of the rule will be parsing whether Mr. Trump’s memo adheres to the Administrative Procedure Act.” More details are likely to follow in the coming hours and days and we’ll be watching this issue closely.

2. RIAs Without a Succession Plan Should Take These Steps Immediately (Author- Jeff Benjamin, Investment News)

At this weeks TD Ameritrade LINC 2017 conference, David DeVoe, managing partner at consulting firm DeVoe & Co., spoke in a session on how to prepare for succession. As reported by Jeff Benjamin, Mr. DeVoe asked the audience of registered investment advisers to fess up if they did not have a business succession plan in place, ande a few “sheepishly raised their hands.” Mr. DeVoe told the audience, if you have no plan, the first thing you need to do tomorrow morning is to acquire life insurance and then retrieve a signed continuity agreement. As reported by Jeff Benjain, DeVoe revealed the Securities and Exchange Commission (“SEC”) has heard that between 60% and 70% of advisers don’t have a plan, so we can expect that succession plans will be required by the SEC at some point. Check out Benjamin’s article on the importance of advisers having a prepared succession plan.

3. Why Advisors Should Act Like Fiduciaries With or Without DOL Rule (Author- Bernice Napach, Think Advisor)

Bernice Napach, a senior writer for Think Advisor, reports on the a panel discussion on the importance of why advisors should act like fiduciaries regardless of the outcome of the DOL fiduciary rule. The discussion took place at this week’s TD Ameritrade National LINC 2017 conference.  They revealed clients these days are more knowledgeable than ever and know about potential conflicts of interest rules. Jean-David Larson, director of regulatory strategic initiatives at Russell Investments, claim clients are “paying more attention to transparency about fees and investment products, and that will continue even if the DOL doesn’t persist with the rule.” Panelists at the conference gave some recommendations for advisors in order to properly comply with the potential fiduciary standard. of investment consultants 

4. Trump’s DOL-Rule Hit Man, Anthony Scaramucci, Gets Hoisted, Reportedly, For Financial Conflict of Interest (Author- Brooke Southall, RIABiz)
   

Brooke Southall, RIABiz reporter, reports according to The New York Times, Anthony Scaramucci, hedge fund billionaire and large donor to the Trump campaign, “was passed over for a White House appointment as liaison to the business community.” He has made it very clear to the industry that he is completely opposed to the DOL fiduciary rule and strongly believes it will be repealed. Southall reports, “fiduciary advocates may breathe a sigh of relief now that the highest-profile DOL rule basher has been cut adrift by Trump’s inner circle.” However, today’s announcement from the Trump administration is likely to mute that optimism. It is reported another job is currently being determined for Scaramucci. 

5. Redtail Integrates RIA in a Box to Facilitate Regulatory Compliance Tasks (Author- Rosemary Barnes, Finance Magnates)

As reported by Rosemary Barnes, Redtail Technology, a client relationship management (“CRM”) solutions provider for financial services firms, and RIA in a Box, a leading provider of registration and compliance consulting for RIA firms, have announced a new integration. The integration will now allow joint subscribers to MyRIACompliance® (“MRC”), an online software platform provided by RIA in a Box, and Redtail’s CRM system, to view and complete regulatory compliance tasks all within Redtail’s CRM calendar. The integration will reduce the confusion of advisors needing to manage multiple calendars on multiple platforms. MRC users will now be able to push their firm’s tailored data and compliance tasks directly into Redtail’s CRM platform.  The integration is provided at no additional cost for joint clients. 

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