Regulatory
Does Advising On IRAs Make You A Fiduciary And Can A Computer Model Absolve You Of Your Fiduciary Responsibility?
AdvisorOne earlier this week reported on how section 408(g) of the Employee Retirement Income Security Act (ERISA) Pension Protection Act (PPA), a recent addition to ERISA, might exonerate broker-dealer reps who advise on IRA accounts of all fiduciary liability by employing a computer model to help plan participants make investments.
Deadline For Switch To State Regulation Is Extended
RIA firms needing to change from SEC oversight to a new program offered by the North American Securities Administrators Association (NASAA) have another month to do so. The initial deadline for selecting coordinated review by multiple state regulators has been extended to April 30. The program is designed for registered investment advisors (RIAs) who register in as many as four to 14 states.
Schwab Is Instituting Automatic Suitability Warnings On Exchange Traded Notes (ETNs)
Similar to the way options trades have a suitability warning signal before they’re executed, trades in Exchange Traded Notes (ETNs) will soon automatically produce a pop-up alert for retail investors. FINRA is looking into the way ETNs are marketed to investors, especially after the value of a popular ETN designed to track the volatility of the market lost significant value.
New Survey Says Dodd-Frank Will Help Restore Client Trust
A new survey shows financial industry executives think that the new Dodd-Frank regulations will help restore investor trust. Reputations in the industry were harmed by the 2008 credit crisis as investors lost confidence that firms were acting in their best interests. The Madoff incident also significantly eroded investor trust.
Clients Need Greater Disclosure And Clear Language In Choosing Advisors
The Certified Financial Planner (CFP®) Board is becoming more proactive in its recommendations to the SEC. Its latest letter says that clients need more information about advisors to be able to choose the right advisor. And they need this information to be published in a language they can understand.
