Compliance innovation moves fast, but the news moves faster. To keep you and your team up to speed on the latest happenings and goings-on in the compliance world, we’ve aggregated the top five articles from the past few weeks to provide an in-depth look at the regulatory ecosystem.
Stay up-to-date and in the know on everything happening in the compliance world as of February 2, 2024.
Compliance Solutions Provider Of The Year: COMPLY, MarketCounsel And Smarsh – Author Chris Latham
The WSR Wealth Exemplar Awards Compliance Solutions Provider of the Year recognizes the top three firms in non-institutional wealth management compliance. This year, COMPLY was one of three organizations to take home the win!
“Last year, COMPLY released its 2023 Chief Compliance Officer Playbook and its 2023 Regulation Rundown reports, which collectively covered rules and enforcement action by the SEC and FINRA…In November, it launched the COMPLY Program Management and Annual Review, which automates tasks and creates SEC-compliant reports. The same month, the company announced its second annual COMPLYConnect Awards for financial industry professionals.”
Who’s Covered Under FINRA’s New Home Office Rule? Here’s Some Help. – Author Melanie Waddell
The Financial Industry Regulatory Authority (FINRA) has introduced new rules treating home offices as “residential supervisory locations” and initiated a remote inspections pilot program, offering relief for broker-dealers amid the pandemic-induced rise in remote work.
“The rules around residential supervisory locations, or RSLs, take effect June 1, while the Remote Inspections Pilot Program begins July 1….The key thing we do know now is, since the rule is adopted, since we do now have an effective date for the rule, firms are going to have to make a determination of who amongst our remote workers — and individuals who are going to stay remote — meets the definition of a residential supervisory location.”
‘We’re scrambling to figure out spot-bitcoin ETFs,’ says industry exec – Author Bruce Kelly
Broker-dealers now have SEC approval to allow financial advisers to sell new spot Bitcoin exchange-traded funds (ETFs). Despite early adoption by some, like Wells Fargo Advisors, others are cautious. Matt Fries of Cetera Financial Group noted the challenges presented by new structures, expressing the need to develop policies and training for financial advisors. Broker-dealers, typically cautious with volatile products, face scrutiny in incorporating spot Bitcoin ETFs into portfolios. Cambridge Investment Research’s Seth Miller highlighted the difficulty of staying ahead of regulatory changes and addressing advisor demand promptly
DOL retirement proposal faces 2 potential checks before election – Author Tobias Salinger
The pending retirement advice regulation from the Department of Labor (DOL) is gaining significance in light of the upcoming presidential election. The proposal aims to strengthen fiduciary duties for individual retirement account rollovers, insurance-product sales, and other 401(k) services. Expected to be released in the second or third quarter, the rule has sparked debates. Supporters believe it enhances consumer protections, while opponents argue it could restrict access to professional advice and impose up to $2.5 billion in annual compliance costs, urging the DOL to withdraw the proposal. The rule’s fate may be influenced by the election outcome.
State regulators oppose bill to allow private markets access through advisors – Author Mark Schoeff Jr.
State securities regulators are opposing a proposed bill that seeks to grant financial advisers access to private markets. The North American Securities Administrators Association (NASAA) expressed concerns over investor protection and market integrity, arguing that allowing retail investors access to complex private offerings through advisors may increase risks. NASAA is urging Congress to reject the bill, emphasizing the need for stringent regulatory measures to safeguard investors and maintain market stability.
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