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 November 14, 2015:
- Cybersecurity: A Checklist for Advisors (Author- Bernice Napach, ThinkAdvisor)
Former FBI chief, Greg Rupert, says that cyber threats are “nonstop.” Investment advisers know all too well that this is a fact of life but feel there isn’t much they can do about it. Experts are calling on advisory firms to prevent cyber-attacks by following certain guidelines. Bernice Napach gives the details on what registered investment advisors (RIA) can do to make sure they have the proper cybersecurity policies in place.
- Regulators May Put Robo Firms Under Fiduciary Microscope (Author- Suleman Din, FinancialPlanning)
Following the recent scrutiny of robo-advisors‘ adherence to applicable securities laws, regulators are now trying to figure out the best way to keep tabs on them. Some in the industry have raised questions in regards to what fiduciary duty actually looks like for a robo-advisor. As it stands today, online advisers are generally registered as traditional RIA firms. Suleman Din reports on the opinions of some industry experts as it relates to robo-advisors and SEC regulations.
- Cybersecurity Measures Can Save Your Practice Millions (Author- Glenn G. Kautt, FinancialPlanning)
A study was performed in which proposals from cybersecurity firms were reviewed, and it revealed some best practices that advisory firms can implement in regards to information security. Since a breach in security can lead to severe issues for an RIA firm, these and other best practices prove to be a great starting point as to how to improve cybersecurity procedures. Glenn Kautt breaks down the findings from the study.
- Advisors Take Note: Compliance Officers Are Watching (Author- Bernice Napach, ThinkAdvisor)
A recent study by Charles Schwab revealed that a number of compliance officers have taken recent action against employees for ethics violations. In the past 12 months, almost half of all compliance officers reported that they have taken action against employees, at times in resulting in termination. Bernice Napach reports on what experts are saying compliance officers should be doing to ensure their staff members are staying compliant.
- Republicans want to see cost-benefit analysis before SEC proceeds on fiduciary (Author- Mark Schoeff Jr., InvestmentNews)
At yesterday’s hearing, House Republicans stated that they want a detailed cost-benefit analysis before the Securities and Exchange Commission (SEC) proposes their new fiduciary rule. SEC Chairwoman, Mary Jo White, confirms that this will be included in the proposal, though she still hasn’t given a time line for when that will be. White also fielded questions and concerns regarding the DOL’s fiduciary rule. Mark Schoeff reports on more of the details.
Be sure to check back next Friday for next week’s top articles!