More On Legal & Compliance
from The Advisor's Professional Library- RIAs and Customer Identification Just as RIAs owe a duty to diligently protect their clients’ privacy and guard against theft, firms also play a vital role in customer identification. Although RIAs are not subject to an anti-money laundering rule, securities regulators expect advisors to address these issues in their policies and procedures.
- Code of Ethics Rule The Code of Ethics Rule, found in Rule 204A-1, uses severe consequences for violation to help ensure investment advisors will do the right thing.
Three states’ securities divisions—Ohio, Michigan and Vermont—are planning to hold seminars in March to help advisors with the transition from federal to state oversight.
As part of the Dodd-Frank Act, advisors with less than $100 million in assets under management must switch from federal oversight by the Securities and Exchange Commission (SEC) to state oversight. Approximately 4,000 advisors will make the switch by July 21, 2011.
The Vermont Securities Division plans to hold its seminar on March 10; the Ohio Division of Securities has scheduled a March 18 seminar; and the Michigan Securities Division has scheduled two seminars on March 21. The North American Securities Administrators Association’s (NASAA) complete “IA Switch” calendar can be accessed here.
The SEC has penciled in an April to July timeframe in which the agency plans to adopt rules and form changes to implement the transition of mid-sized investment advisors—those between $25 and $100 million in assets under management--from SEC to state regulation, as provided in the Dodd-Frank Act.
David Massey (left), North Carolina’s Deputy Securities Commissioner and president of NASAA, detailed in his recent blog for AdvisorOne, the SEC’s proposed transition schedule for advisors, which the agency released in January.
The SEC’s proposed transition schedule states:
Confirming SEC eligibility: Each IA registered with the SEC on July 21, 2011 will file an amendment to its ADV by August 20, 2011 to report its AUM as determined within 30 days of the amendment filing.
Terminating SEC registration: IAs no longer eligible for SEC registration must file ADV-W by October 19, 2011.
