RIA Compliance and Practice Management Blog

Top RIA compliance news articles for the week of Nov. 25, 2022

Posted by RIA in a Box

Dec 2, 2022 12:00:15 PM

RIA marketing rule

Each Friday, we are giving you our weekly report highlighting the top compliance news articles from various industry news publications. We have selected the most relevant and important news articles related to registered investment adviser (RIA) compliance and regulatory issues. This week's recap focuses on anticipation around regulations from the Department of Labor (DOL), how you can help elderly clients stay clear of  scams and how the ComplyConnect Conference & Expo met the needs of wealth management professionals.

Here are our top investment adviser compliance articles for the week of Nov. 25, 2022:

Learn More About Automated Employee Trade Monitoring

  1. How to keep elderly clients safe from scams this holiday season (Author Greg Greenberg, Investment News)

In this blog post, Gregg Greenberg discusses the steps advisers can take during the holiday season to help protect elderly clients from financial threats and scams. First and foremost, advisers should make the effort to gain a deep understanding of their client’s financial circumstances and family dynamics in order to recognize signs of elderly abuse. Advisers can do this by keeping track of regular expenses and charitable donations. It’s evident that elderly clients are vulnerable to particular risks, even more so around the holidays because of increased spending. For this reason, advisers should learn more about the current risks their clients face and counsel them on common tactics scammers use.

  1. ComplyConnect Spotlight’s Industry’s Top Regulatory Priorities (Author – Sandra Ressler, Wealth Solutions Report)

While most events held after the pandemic were expected not to excel, the ComplyConnect Conference & Expo did. This is because the conference addressed rising urgencies in the wealth management space.

The first event of its kind, the ComplyConnect Conference & Expo event, allowed members of this career field to learn more about how the landscape is changing, and the event offered members an opportunity to connect with others in their career. Both of these are priorities for members of this career field.

  1. Succession Planning Then and Now with David Grau. Sr. (Author – Diana Britton, Wealth Management)

Many firms often overlook or undermine the time and resources that must go into succession planning. According to FP Transitions founder David Grau Sr., succession planning takes an average of ten years to run. According to Grau, an average success plan requires the following:

• An appraiser
• A cash flow analyst
• A compensation specialist
• A couple of lawyers
• A tax specialist

Grau noted that often times, firms understand the importance of succession planning, but they don’t know how much time it takes to do so and or lack the resources to thoroughly do it. Failure to successfully plan a succession can be detrimental to a firm’s operations.

  1. DOL turns its focus to next iteration of investment advice reg (Author – Mark Schoeff, Jr., Investment News)

Financial advisers are waiting for the DOL to revisit its investment advice regulation. They are expecting the DOL to expand the definition of who is a fiduciary to retirement savers, building upon a regulation that went into force earlier this year.

Right now, fiduciary status requires that firms have an ongoing relationship with certain investors. They cannot rely on a single recommendation from any investor which, according to critics of the current requirements, gives larger and more influential firms an advantage over others.

The current DOL regulatory agenda indicates a proposed rule will come out in December, but that deadline may be pushed into next year when the agenda is updated. A revised agenda is expected soon.

  1. Warn Your Clients About the “Grandparent Scam” (Author – Emily A. Martin, Wealth Management)

Typically, the “grandparent scam” involves the client getting a call from someone pretending to their grandchild. The individual will say that they’re in trouble and that they need money immediately. Often times, the individual will ask the client not to tell anyone (their parents) that they’re in trouble, because they don’t want to worry them. The client will send the money.
To help your clients avoid this scam, tell them:

1. Don’t panic.
2. Verify the identity of the person on the other end by asking them questions that only your grandchild would know.
3. Ensure the grandchild is in need. Call other family members if need be to confirm this information.

Download the Cybersecurity Incident Response Steps Infographic

Don't forget to check out last week's top RIA compliance news articles which focus on the SEC Marketing Rule, the SEC’s continued enforcement actions and how firms embrace communication apps and remain in compliance.

Topics: RIA Operations, RIA Compliance, RIA Technology

RIA in a Box LLC is not a law firm, investment advisory firm, or CPA firm. RIA in a Box LLC does not provide legal advice or opinions to any party or client. You should always consult your relevant regulatory authorities or legal counsel if applicable.

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