Category Archives: Regulatory

Compliance, Enforcement, Regulatory, Standard of Care

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 4, 2019 BDIA Editors Leave a comment

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

Topics include:

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Compliance, Enforcement, Regulatory, Standard of Care

SEC issues guidance regarding proxy voting responsibilities of IAs

September 4, 2019 Clifford E. Kirsch, Editor Leave a comment

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.

CFP Board’s new Standard of Conduct

August 22, 2019 Clifford E. Kirsch, Editor Leave a comment

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

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

August 12, 2019 Clifford E. Kirsch, Editor Leave a comment

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.

Compliance, Enforcement, Regulatory

Here’s looking at you, FINRA — Extraordinary Cooperation and Self-Reporting

August 2, 2019 Clifford E. Kirsch, Editor Leave a comment

On July 11, 2019, the Financial Industry Regulatory Authority released Regulatory Notice 19-23, providing new guidance on what constitutes “extraordinary cooperation” in FINRA investigations, and what credit FINRA may give to broker-dealers or individuals. How will this guidance affect firms that self-report violations under FINRA Rule 4530(b)?

Read more here.