SearchCompliance.com's Alexander Howard did a nice roundup this week of the compliance trends we're in for in the next six months. Not surprisingly, increased regulation and enforcement is right around the corner. Of course, Financial Industry Regulatory Authority CEO Rick Ketchum and Securities and Exchange Commissioner Luis Aguilar have both suggested as such in recent days, but as Howard says, when these two are talking about it, we should pay attention.
Ketchum thinks investment advisers need a single fiduciary standard, and so far financial folks like the idea. They are concerned, however, about what the Obama administration's plan calls "harmonizing" the regulation of investment advisers and broker-dealers. InvestmentNews quotes Financial Planning Association managing director Dan Barry this way:
"We'd be concerned if by harmonization they would subject investment advisers to the oversight of FINRA."
Representatives from the U.S. Attorney General's office have also indicated that they will be quick to enforce securities and antitrust laws; SearchCompliance.com also reports the Department of Justice is cracking down on Federal Corrupt Practices Act violations. Former deputy attorney general Paul McNulty says officials have seen fines totallng "hundreds of millions" in the last six months for FCPA violations.