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 September 12, 2015:
- SEC to Start Second Round of Cyber Exams, Issues Risk Alert (Author- Melanie Waddell, ThinkAdvisor)
The Securities and Exchange Commission (SEC) will continue to test RIA firms and broker-dealers on their level of cybersecurity preparedness in a second round of exams in 2016. Melanie Waddell provides us with the detail’s the SEC’s latest RIA cybersecurity compliance risk alert issued by the staff of the Office of Compliance Inspections and Examinations (OCIE).
- Advisors Beware: Social Media Fraught with Danger (Author- Cyril Tuohy, InsuranceNewsNet.com)
In the age of social media, many advisors are aware their use of Twitter, LinkedIn, Facebook, etc., can be greatly beneficial to their firms. However, many also forget that there are regulatory standards that must be followed when using social media. Cyril Tuohy provides some best practices from our recently released free checklist titled: 10 Social Media Compliance Guidelines for RIA Firms.
- Fiduciary Advocates Want Dividing Line Between Advice and Sales (Author- Kenneth Corbin, FinancialPlanning.com)
Advocates of a stricter fiduciary rule are pushing for a clearer distinction of the term “fiduciary” as the Institute of the Fiduciary Standard gears up for the release of its set of best practices. Kenneth Corbin gives us the rundown of the best practices framework and the ban on principal trading.
- Finra board to consider tougher expungement guidance to arbitrators (Author- Mark Schoeff Jr., InvestmentNews)
The Financial Industry Regulatory Authority (FINRA) will vote on the proposed expanded expungement guidance as part of the dispute-resolution rules. Some feel the insert INTOion of this rule would scare brokers into following it. Mark Schoeff gives us the details of the meeting’s agenda.
- FINRA Seeks to Narrow Reporting Gap (Author- Megan Leonhardt, WealthManagement.com)
Earlier this week, Financial Industry Regulatory Authority (FINRA) filed a proposed rule change with the SEC to shorten the waiting period for publishing advisor terminations and investigations from 15 days to three days. The purpose of the original waiting period was to give advisors a chance to comment. Megan Leonhardt reports on the reasons FINRA is proposing the rule change.
- Fund Investors May Pay Fees for Withdrawals Amid Turmoil (Author- David Michaels, Bloomberg News)
The SEC is considering changing the rule that allows investors to cash out their mutual funds when the market is at risk. The new rule would implement “swing pricing” which would give investors a slightly lower price than the fund’s closing price. Bloomberg News reports on the pros and cons of this rule, should it pass.
Be sure to check back next Friday for next week’s top articles!