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 October 3, 2015:
- IAA Exec: SEC May Vote By March On Third-Party Exams For Advisors (Author- Ted Knutson, Financial Advisor Magazine)
Investment Advisor Association (IAA) lobbyist, Neil Simon, stated that the Securities and Exchange Commission (SEC) may vote on the proposal for third-party exams by March. If implemented, Simon predicts third-party exams would hold be less in scope compared to regulatory exams conducted by the Securities and Exchange Commission (SEC). Ted Knutson reports on these details that came from the recent TD Ameritrade Forum held in Washington, DC earlier this week.
- For plan advisors, cyber security is the greatest risk (Author- Nick Thornton, BenifitsPro)
A recent cybersecurity attack of a St. Louis firm lead to the compromise of thousands of clients’ information. This attack is only one of many, so why aren’t firms taking better measures to protect themselves and their clients? Industry experts weigh in on the different ways firms can properly secure their networks.
- TD Ameritrade launches website to spur adviser advocacy (Author- Mark Schoeff Jr., InvestmentNews)
TD Ameritrade is rallying RIA firm principals to lobby congress via TD’s newly launched website in order to help influence how the need to increase the frequency of RIA examinations is implemented. The purpose of the website is to allow advisors to collectively bring issues to the forefront, and gain Congress’ attention. Mark Schoeff Jr. provides the details of the new initiative.
- How Robos Fall Short of Fiduciary Law (Author- Melanie L. Fein, FinancialPlanning)
The Department of Labor (DOL) has been touting robo-advisors as low cost investment option for retirees with minimal conflict of interest. However, attorney Melanie L. Fein who led a study commissioned by Federated Investors, presents the case that robo advisors do not offer personalized investment advice and thus may be running afoul of investment adviser regulations. It’s important to note that this study has received a high level of skepticism from across the industry but nevertheless is an interesting read.
- Ex-SEC Chairs: Fiduciary Rule Needs To Get Done (Author- Megan Leonhardt, WealthManagement.com)
During TD Ameritrade’s Advocacy Leaders Summit earlier this week, three former SEC chairs expressed their opinions on the fiduciary rule. Mary Schapiro stated the she feels “very strongly that the SEC needs to move forward and move forward now.” Schapiro also encourages the DOL to implement their fiduciary rule before the SEC makes a decision. Megan Leonhardt reports on more of what came from the Summit in DC.
Be sure to check back next Friday for next week’s top articles!