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 19, 2015:
- How Clients React to Conflict-of-Interest Disclosures (Author- Anna Prior, WSJ.com)
RIA firms are required to disclose all conflicts of interest on the Form ADV. A recent study took a look at the way investors react when presented with a conflict-of-interest disclosure. The study found that investors find advisors more trustworthy when presented with such a disclosure, unless the investor is told by their advisor that the disclosure is required by law. Anna Prior reports on the details of this study.
- Compliance officer fines spur debate over U.S. SEC tactic (Author- Matt Rybaltowski, Reuters)
It has been long debated whether the Chief Compliance Officer is responsible for any violations at their firm or not. The National Society of Compliance Professionals (NSCP) is now asking the Securities and Exchange Commission (SEC) to set clear guidelines regarding this issue. Matt Rybaltowski explains the details of this request and the past cases that have led to it.
- SEC nails advisory firm for cybersecurity failure before data breach (Author- Alessandra Malito, InvestmentNews)
The SEC has taken one of its first actions against an RIA firm due to cybersecurity issues. The advisory firm has agreed to pay a $75,000 settlement and this should serve as a significant wake up call to RIA firms of all sizes that information technology security needs to be a top compliance priority.. Alessandra Malito explains the case.
- State Securities Regulators: 2014 Complaints Up, Investigations Down (Author- Ted Knutson, Financial Advisor Magazine)
With the release of the 2014 scorecards, state regulators revealed the statistics for the year. The findings revealed that investor complaints had risen, investigations declined, and fraud actions had remained roughly the same. Ted Knutson explains what these trends mean.
- FINRA Fines Down in First Half of 2015 (Author- Megan Leonhardt, WealthManagement.com)
As the first half of 2015 winds down, the Financial Industry Regulatory Authority (FINRA) reports that fines in the broker dealer industry have decreased and further predicts that at this rate, fines for the full 2015 calendar year are expected to decline by 44% compared to 2014. Megan Leonhardt gives us more of the details and predictions that came from this report.
Be sure to check back next Friday for next week’s top articles!