Category Archives: Regulatory

Fee-Based Annuities Get a Boost, More Resources on Reg BI and Form CRS, States get Tough on Crypto Scams, SEC Speaks on Proxy Voting, Gets Tough to Protect Vulnerable Adults and Drops the Other Shoe on Revenue Sharing

September Regulatory Updates from Jaqueline Hummel at Hardin Compliance Consulting LLC.

Topics include:

Read the full post here

SEC issues guidance regarding proxy voting responsibilities of IAs

On August 21, 2019, in a 3-2 vote, the SEC voted in favor of publishing guidance regarding the proxy voting responsibilities of investment advisers. The guidance, structured in a question-and-answer format, provides examples to help facilitate IAs’ compliance with their proxy voting responsibilities under the Investment Advisers Act of 1940, as amended (Advisers Act), and Rule 206(4)-6 thereunder. Importantly, the SEC encourages IAs and proxy advisory firms (PAFs) to review their policies and practices before next year’s proxy season to ensure they are consistent with the guidance.

 

Read more here.

Learn How the SEC Works. . .

Securities lawyers need to have a firm grasp of not only the federal securities laws, but also how the SEC works to administer these laws.  Join us on October 17th, at this half-day program, to learn about the federal securities laws and the operating divisions at the SEC that administer those laws, as well as the other agencies that the SEC interacts with on a regular basis.

Securities Law and Practice 2019

CFP Board’s new Standard of Conduct

The Certified Financial Planner (CFP) Board recently adopted a new fiduciary standard for CFP professionals to act in the best interest of their clients at all times when providing financial advice. Although the CFP Board announced that it would not enforce the new requirements until June 30, 2020, broker-dealers and investment advisers should begin considering whether or not they should take any action to help ensure that their associated persons who are CFP professionals comply with the new fiduciary standard, including:

  • the specific fiduciary duties owed to a CFP’s client, including the duty to avoid or fully disclose material conflicts of interest
  • considerations for firms regarding whether, and if so how, to supervise the new standard
  • enforcement of the new fiduciary standard of conduct

Read more here.

The SEC’s new standard of conduct rules – application to retirement accounts

In completing its broker-dealer standard of conduct rulemaking, the SEC addressed important questions about the applicability of those requirements to retirement accounts. This alert provides analysis of the reach of the new requirements in the retirement market, including:

  • the types of broker-dealer interaction with plan participants that fall within the reach of Regulation Best Interest and Form CRS
  • how the new rules deal with the treatment of rollover advice to plan participants and IRA owners
  • practical considerations regarding the distinction between “investment education” and “recommendations”

Read more here.