More On Legal & Compliance
from The Advisor's Professional Library- The New and Improved Form ADV Whether an RIA is describing its investment strategy in advertisements or in the new Form ADV Part 2, it is important the firm articulates material risks faced by advisory clients and avoids language that might be construed as a guarantee.
- Suitability and Fiduciary Duty Recommending suitable investments is more than just a regulatory obligation. Many investors bring cases claiming lack of suitability, so RIAs must continuously put the onus on clients to notify the advisor of changes in their financial situation.
Mary Schapiro is now officially the chairwoman of the Securities and Exchange Commission. Schapiro was sworn in at the SEC on January 27 after being unanimously approved by the Senate on January 26. The oath of office was administered by SEC Commissioner Elisse B. Walter at SEC headquarters.
"Seventy-five years after this great agency was founded, the SEC must play a critical role in rebuilding investor confidence, reviving our markets, and rejuvenating our economy," said Chairman Schapiro after being sworn in. "I'm honored and grateful to be entrusted with leading this agency during such an important time--when the SEC must effusively be the investor's advocate. Working with my fellow Commissioners and the agency's talented staff, we will be committed to reinvigorating a financial regulatory system that must protect investors and vigorously enforce the rules. We will work to deepen the SEC's commitment to transparency, accountability, and disclosure while always keeping the needs and concerns of investors front and center."
Chairman Schapiro was appointed by President Barack Obama on January 20, 2009.
The Board of Governors of the Financial Industry Regulatory Authority (FINRA) has established a search committee to identify candidates to replace Schapiro as FINRA's CEO. Stephen Luparello, FINRA's Senior Executive Vice President for Regulatory Operations, will serve as Interim CEO while the Board committee conducts its search for a permanent CEO.
