The advisor said that the amendment in the Sindh advisors Act
2003 had also been approved and referred to the Sindh assembly for legislation.
Finally, there is the "duty of loyalty," which, as Rostad succinctly put it, "is the very heart of the fiduciary standard under the Advisors Act
." The SEC instructed commenters in Part B, Section 1 to "assume that any rule under consideration would expressly impose certain disclosure requirements," including all material conflicts of interest.
1206, the "Access to Professional Health Insurance Advisors Act
1206, the Access to Professional Health Insurance Advisors Act
Under the legislation, the Investment Advisors Act
would be amended to simply delete the current exclusion under that law for broker-dealers whose advice is incidental to the conduct of his or her business and who therefore receive no special compensation for such advice.
The advice must be provided by a "fiduciary adviser," which is defined as a registered investment adviser (under the Investment Advisors Act
of 1940) or a bank, insurance company or broker-dealer (under the Securities Act of 1934).
The AICPA Personal Financial Planning (PFP) Executive Committee has been tracking the SEC's activities relating to its final rule, "Certain Broker-Dealers Deemed Not to Be Financial Advisers" (www.sec.gov/rules/ final/34-51523.pdf), which exempts certain fee-based broker-dealers from the provisions of the Investment Advisors Act
It covers all significant statutory provisions, including the Security Exchange Act of 1934, the Investment Company Act of 1940, the Investment Advisors Act
of 1940 and the privacy provisions of the Gramm--Leach--Bliley Act.
The first panel debated the scope of the Investment Advisors Act
of 1940 (Act); among the participants was the AICPA's Director of Personal Financial Planning.
To close this gap, says Tittsworth, the IPA (specifically Section 913) should simply amend the Advisors Act
to extend the current fiduciary obligation to broker-dealers.
(CPAs can find details on the SEC rules in section 275.206(4)-3, "Cash Payments for Client Solicitations," of the Investment Advisors Act
of 1940.) According to Rob Stype, managing partner of Adviser Compliance Associates LLC, a regulatory consulting firm in Washington, D.C., SEC-registered firms should review the regulations of each state where they do business.
The Advisor must be registered as an investment advisor under the Investment Advisor Act of 1940, as amended (the Advisors Act
) and remain registered.