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 5, 2015:
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8 Issues to Address in Your Advisory Contracts (Author- Chris Stanley, ThinkAdvisor)
Investment advisory contracts are a classic pain point for RIA firms and traditionally lead to many regulatory compliance deficiencies. Chris Stanley provides a list of typical items to be included in advisory contracts and additional best practices to consider when drafting contracts.
- So You Really Want to Start that RIA? Large Advisors in SEC Crosshairs (Author- Rob Mooney, WealthManagement.com)
Rob Mooney describes an investment adviser regulatory environment that is becoming increasingly aggressive especially in regards to larger SEC-registered RIA firms. As more financial advisors consider starting their own RIA firm, Mooney describes a future of increased regulatory scrutiny.
- SEC ship won’t become a speedboat in wake of Gallagher departure (Author- Mark Schoeff Jr., InvestmentNews)
Last Friday, commissioner, Daniel M. Gallagher, of the Securities and Exchange Commission (SEC) announced that he will be stepping down shortly. This news has been a cause for concern since there is little chance a successor will be named by that time. Mark Schoeff explains what’s next for the SEC in the next few months and how they plan to deal with it.
- TDAI’s Schweiss: An Incidental Truth (Author- Skip Schweiss, WealthManagement.com)
The Investment Advisers Act states that brokers do not need to register as investment advisers with the SEC as long as their advice is “solely incidental.” In this article, Skip Schweiss gives his argument as to why brokers should be held to the same fiduciary standard as investment advisers and why no new passing of laws may even be necessary.
- Bipartisan backing to halt DOL fiduciary rule nowhere in sight (Author- Mark Schoeff Jr., InvestmentNews)
Democrats are standing with President Obama in a show of support for the proposed Department of Labor (DOL) fiduciary rule. In a hearing earlier this week, representatives proposed legislation that would halt the finalization of the rule until the SEC acted on a similar rule. Mark Schoeff Jr. provides the details of the hearing.
- Does a Fiduciary Dystopia Await Industry? (Author- Ron. A. Rhoades, WealthManagement.com)
It’s been a long road, but the fiduciary rule is nearing its finalization. Many, including fiduciary proponent Ron Rhoades, are fearful of what may happen if opponents are successful in getting their desired version of the fiduciary rule. Rhoades gives his prediction of what the future may hold if that happens, and it does not look bright.
Be sure to check back next Friday for next week’s top articles!