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Top RIA Compliance News Articles for the Week of July 11, 2015

Jul 17, 2015

Our list of the top registered investment adviser (RIA) compliance and regulatory news articles for the week of July 11, 2015.

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 July 11, 2015:

  1. SEC’s White: Compliance officers not a target of the agency (Author – Mark Schoeff Jr.)

After recent commentary that the Securities and Exchange Commission (SEC) may be more directly targeting the conduct of a Chief Compliance Officer (CCO) in recent enforcement cases, SEC Chairwoman Mary Jo White sought to reassure compliance officers that they will not be the target of enforcement actions unless they cross a clear line of misconduct. Mark Schoeff Jr. has the full story and additional quotes from Ms. White.

  1. SEC, FINRA Want to Know Your Cybersecurity Plan (Author- Kenneth Corbin, FinancialPlanning)

Cyber security has become increasingly important and advisors can expect examiners to keep a close eye their practices. Kenneth Corbin gives the details on what advisors can expect from the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) as it relates to information security expectations. In particular, Corbin cites recent comments by Christopher Hetner, the cyber security lead in the Technology Controls Program at the SEC’s Office of Compliance Inspections and Examinations, that helps shed light on what the SEC may be looking for in upcoming RIA examinations.

  1. Chamber calls on SEC to reform use of in-house judges (Author – Mark Schoeff Jr.) 

There has been quite a bit of recent scrutiny over the SEC’s use of its own administrative judges in enforcement cases. Now, the U.S. Chamber of Commerce is also advocating for the use of a trial jury in more serious cases. Mark Schoeff Jr. provides the full details.

  1. Cybersecurity ‘Not Owned’ by Compliance but Shared: FINRA Exec (Author- Melanie Waddell, ThinkAvisor)

Often the Chief Compliance Officer (CCO) of advisory firm is being put in charge of cyber security issues, but regulators are also making it clear that this responsibility should be shared with operational risk personnel. Melanie Waddell gives us the breakdown on the different perspectives being shared and some recent identified cyber security threats including instances of client impersonations.

  1. FSI Confident Final Fiduciary Rule Will Be ‘Workable’ (Author- Kenneth Corbin, FinancialPlanning)

The Department of Labor’s fiduciary proposal has stirred up a lot of controversy recently, but one of the strongest critics, The Financial Services Institute (FSI), feels the final rule will take into consideration most of its concerns. It’s also important to note that FSI represents a large number of independent broker dealer (IBD) and other financial firms, and not necessarily the registered investment adviser (RIA) industry. Kenneth Corbin gives us the details of FSI’s comments and concerns. 

  1. Industry Groups Urge SEC for Advisor Disclosure Amid BrokerCheck Shortfalls ( Author- Shreya Agarwal, FinancialPlanning)

The Financial Industry Regulatory Authority (FINRA) continues to receive scrutiny from various industry groups over the accuracy of its BrokerCheck system. Some industry groups are claiming that the system does not disclosure full and accurate information and it needs to be improved as FINRA continues its marketing campaign to drive more consumer awareness of the BrokerCheck system.

Be sure to check back next Friday for next week’s top articles!