Previous "Safe Harbor" Practices May Not Be Adequate In 2012, Compliance Guru Says

Friday, December 23, 2011 13:01

Tags: compliance

Advisors who thought they were doing everything right may get a rude awakening next year, according to noted securities lawyer Tom Giachetti.

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Giachetti tells AdvisorOne that policies that were previously not a problem for regulators are likely to become controversial in 2012.


For example, the "good enough" due diligence that almost destroyed firm like Securities America is clearly no longer adequate.


Client account data security and, in firms where it applies, branch manager supervision are also likely to be hot spots, Giachetti says.


In these circumstances, the letter of the regulations is king. Even if certain aspects of the rules were downplayed or actively ignored in the past, as long as they're still on the books, it's better to be safe than sorry.






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