Regulatory

The Battle Between SIFMA And The Institute For The Fiduciary Standard Heats Up

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The battle over the appropriate application of the term “fiduciary” has intensified toward an industry organization, the Securities Industry and Financial Markets Association (SIFMA). The Institute for the Fiduciary Standard, an organization that represents investment advisors, has accused SIFMA of trying to misapply the term in an effort to water down the application to brokers.

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Cost-Effectiveness May Derail DOL's Expanded Application Of "Fiduciary"

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The latest development in the Department of Labor’s (DOL) effort to include retirement plan advisors as fiduciaries is centered on cost effectiveness. The expanded application of fiduciary duty would reach advisors who manage individual retirement accounts (IRAs).

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New Bill Will Propose FINRA As Industry SRO

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A Republican bill that would make FINRA the regulatory body for investment advisors may soon come on the floor. Republican Spencer Bachus is drafting the legislation and is expected to introduce it to Congress next week. Objections are strong to FINRA becoming a self-regulatory body for the financial industry. Those opposed to FINRA having such a strong position say that the organization is more closely tied to a suitability frame of reference rather than a fiduciary one.

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SEC Forms New Committee In Line With Dodd-Frank

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As part of the Dodd-Frank Act, the SEC is forming a new investor advisory committee designed to submit recommendations to the commission having to do with almost all of its oversight functions. It will particularly be a watchdog for divergent issues of importance between institutional and retail investors.

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IRS Gets Involved In Monitoring Municipal Bond Transactions

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The IRS put together a team in February to investigate municipal bond transactions. It is interviewing its Tax-Exempt Bond personnel about questionable transactions involving possible bid rigging and price fixing and will eventually search externally for additional data.

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