More On Legal & Compliance
from The Advisor's Professional Library- The Need for Thorough and Effective Policies and Procedures Whethere an advisor is SEC or state-registered, RIAs must revise their policies and procedures to address significant compliance problems occurring during the year, changes in business arrangements, and regulatory developments.
- Recent Changes in the Regulatory Landscape 2011 marked a major shift in the regulatory environment, as the SEC adopted rules for implementing the Dodd-Frank Act. Many changes to Investment Advisers Act were authorized by Title IV of the Dodd-Frank Act.
The Certified Financial Planner (CFP) Board of Standards announced Tuesday that it was seeking comments on its proposed sanction guidelines and the Appeals Committee Board of Directors, which considers appeals put forth by the CFP Board’s Disciplinary and Ethics Commission.
The sanction guidelines assist the Disciplinary and Ethics Commission, the group charged with conducting disciplinary hearings in accordance with CFP Board’s Disciplinary Rules and Procedures, in maintaining consistency regarding the imposition of sanctions. The proposed guidelines would also be used by the Appeals Committee of the Board of Directors, which considers appeals of Commission decisions, CFP Board says.
Comments must be sent to the CFP Board by May 23.
In cases where violations are found, CFP Board may impose discipline ranging from a private letter of censure or public admonition to suspension or revocation of the right to use the CFP mark. The sanction guidelines, which the CFP Board says can be modified from time to time, include such areas as bankruptcies, books and records violations, breach of contract, breach of fiduciary duty, conflict of interest, continuing education violations and diligence.
CFP Board’s enforcement process includes written notice to individuals under investigation, the opportunity to respond to the matters under investigation, the opportunity to appear at a hearing to address allegations of misconduct, the right to be represented by legal counsel and introduce witnesses and evidence, and the right to appeal decisions involving discipline.
