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 7, 2015:
- Outsourcing Compliance Officer Role Can Be Rife With Risk: SEC (Author- Melanie Waddell, ThinkAdvisor)
As we addressed in our blog post earlier this week, the Securities and Exchangce Commision (SEC) Office of Compliance Inspections and Examinations (OCIE) recently issued a new risk alert highlighting the compliance risks of the outsourced Chief Compliance Officer (CCO) model. Melanie Waddell further breaks down the SEC’s latest risk alert which addresses the trouble areas that can emerge for RIA firms that use a third-party as the firm’s CCO.
- Cyber Attacks Only Going to Get Worse (Author- Megan Leonhardt, WealthManagement.com)
Cyber-attacks are on the rise and are getting more complex. Industry experts say that the objective of these attacks is to acquire personal identifying information which is a major threat. 2016 is expected to be an even worse year than the previous and in addition to identity theft, ransom schemes are being predicted as well. Megan Leonhardt reports on what advisors can expect in the next year and how to keep themselves and their clients as safe as possible.
- SEC ‘Flat-Out Doing’ a Fiduciary Rule: Chief White (Author- Melanie Waddell, ThinkAdvisor)
During a meeting earlier this week, the SEC stated that they are “fully engaged” in making a uniform fiduciary rule. Mary Jo White, SEC chairwoman, says that the SEC is working carefully to ensure the new rule can “raise the bar of compliance but does not have unintended consequences.” However, representatives at the meeting disagree with the approach of the rule and are giving their recommendations. Melanie Waddell reports on the details of the meeting,
- Deliberate or Just Slow? SEC is in No Rush on Fiduciary Rule (Author- Andrew Welsch, FinancialPlanning)
In this piece, we highlight another take on the upcoming SEC fiduciary rule proposal. Is the delay deliberate or is just due to slowness? Andrew Welsch explains the difference between the SEC’s and the Department of Labor’s (DOL) efforts in finalizing a fiduciary rule.
- With Cybersecurity, Knowing Is 95 Percent of the Battle (Author- Ryan W. Neal, WealthManagement.com)
During this week’s Schwab Impact 2015 Conference, cybersecurity was a hot topic of discussion. Schwab Vice President, Greg Ruppert, says that many firms don’t know they’ve been hacked, and that ignorance is dangerous. Another Schwab executive, Clyde Langely, says that the best way to prevent these hacks is to understand them. Ryan Neal reports on more of this discussion from Impact.
Be sure to check back next Friday for next week’s top articles!