July 2016

Private Client Today - Legislative and Regulatory Updates for the Private Client Industry

Spotlight Events

SIFMA’s Annual Meeting, The Capital Markets Conference - September 27th, Washington, DC
By popular demand, SIFMA's Annual Meeting will return to our nation’s capital this fall for candid one-on-one conversations, in-depth breakout sessions and expert insights on the state of our capital markets and how we can retain their well-deserved reputation as the best in the world. Confirmed speakers include Congressman Jeb Hensarling, CFTC Chairman Timothy Massad, Raymond James CEO Paul Reilly and more.

SIFMA Social Media & Digital Marketing Seminar - October 27th, NYC
SIFMA is pleased to present the Social Media & Digital Marketing Seminar, a comprehensive program for Business, Marketing, Legal, and Compliance professionals in Wealth Management. Join leading experts to explore how to leverage the myriad of digital platforms, while ensuring a consistent brand voice and regulatory compliance.

SIFMA’s Next Generation of FAs Seminar - October 5th, St. Louis
Join us for SIFMA’s Next Generation of Financial Advisors Seminar on October 5th in St. Louis. This seminar will bring together experts across multiple fields to explore the numerous opportunities to recruit and train the next generation of financial advisors. Experts will discuss innovative ideas for attracting the millennial generation to explore a career as a Financial Advisor.



Complex Products Forum
On June 16th, SIFMA convened leading experts to discuss the evolution and regulation of the sale of complex products and the proactive steps firms can take to continue to best serve individual investors, and reduce regulatory risk. There was a consensus amongst speakers that while there is no one-size-fits all approach to managing Complex Products, they remain a useful tool in Goals-Based investing. Complex Products may be leveraged as part of diversified portfolio, in which a client seeks to assume additional risk to achieve a portfolio goal to outperform the market. Panelists explored methods of training advisors and clients to use these products properly, as well as how new regulations impact the way they are discussed and sold. Full Highlights; Tom Selman (FINRA) Remarks 



SIFMA Highlights Concerns with Plan to Develop the CAT, Urges Collaboration between SROs and the Industry
On Monday, July 18, SIFMA submitted a comment letter to the Securities and Exchange Commission (SEC) on the National Market System (NMS) Plan for developing a Consolidated Audit Trail (CAT). The NMS Plan for the CAT was developed by a group of self-regulatory organizations (SROs) – the securities exchanges and FINRA – and the SROs submitted the NMS Plan to the SEC pursuant to Rule 613 under the SEC’s Regulation NMS. SIFMA’s comment letter raises substantial concerns with the CAT NMS Plan as it has been proposed, including: no immediate plan to eliminate existing systems that will be obviously duplicative of the CAT – such as FINRA’s OATS system – instead giving SROs several years to analyze redundant system rollback; significant CAT-related costs to be imposed on broker-dealers without providing any detailed analysis; and a need for the industry to have a voting role in CAT governance.

“The development of the CAT presents a singular opportunity to build a state-of-the-art regulatory system that can enhance regulatory oversight while replacing older, redundant reporting requirements that cost billions to maintain. As proposed, the CAT NMS Plan does not sufficiently accomplish these goals. It is imperative that the SEC and SROs work closely with the broker-dealer community now as the CAT NMS Plan is still being developed to ensure a final CAT system that is both useful and efficient. The significant issues we have identified with the CAT proposal show the need to include affected industry members as voting representatives in CAT governance and in all NMS Plans,” said Kenneth E. Bentsen, Jr., SIFMA president and CEO.

To ensure an effective and efficient CAT system, these issues as well as concerns with data usage, governance, operational considerations and the implementation timeline must be addressed before the SEC approves the NMS Plan.
Press Release

House Passes Senior $afe Act; SIFMA applauds step in right direction to protect senior investors
SIFMA applauds the House of Representatives for passage of the Senior $afe Act, which will allow firms to disclose cases of potential senior financial exploitation without the fear of legal ramifications. “As our nation’s senior population continues to expand, protecting senior investors is a top priority for banks and broker dealers that provide financial advice and manage wealth for millions of Americans,” said Kenneth E. Bentsen, Jr., SIFMA president and CEO. “This type of legislation, paired with collaboration within the industry and beyond, allows us to tackle elder financial abuse head-on to better protect the investments of aging Americans.” Press Release

SIFMA Announces: Senior Investor Protection Quarterly
Quarterly Newsletter. Highlighting industry efforts to protect the nation's senior investors.
Sign-Up Now 

Register Today: FINRA-SIFMA Senior Investor Protection Conference
On October 20-21 in Washington, DC, SIFMA and FINRA are partnering to host a day-and-a-half event dedicated to advancing efforts to protect senior investors. Senior Investors account for more than 75% of financial assets in the US. Learn how industry professionals and regulators are continuing to make their protection a priority.

SIFMA Statement on Senate Introduction of the Fair Access to Investment Research Act
SIFMA issued a statement of support on the Fair Access to Investment Research Act sponsored by Senator Dean Heller (R-NV) and Senator Gary Peters (D-MI). “We applaud Senators Heller and Peters for introducing the Fair Access to Investment Research Act, which would reduce obstacles to research on exchange traded funds (ETFs) and registered investment companies. This bill simply clarifies securities laws by providing a statutory safe harbor for certain covered ETF research reports and directing the SEC to promulgate rules for research on other funds under the Investment Company Act of 1940.  As the ETF market continues to grow, this bill’s common sense clarifications will allow broker-dealers to share research on ETFs, providing consumers with greater access to information and fueling capital formation.” Statement

Social Impact Investing: A Conversation with Congress and the Financial Services Industry
Through impact investing, America's capital markets enable programs to improve local outcomes and help communities combat the challenges of long-standing problems such as poverty, pollution, and other social needs. SIFMA hosted a roundtable on Social Impact Investing with industry experts and Members of Congress. The event fueled a discussion on the role of America's capital markets in creating and funding programs designed to improve local communities.
Social Impact Investing Blog Post and Video

OPS 2016: Transforming the Industry into the New Reality
Leaders in Financial Services operations and technology gathered on May 2–5, 2016, at the 43rd annual SIFMA Operations Conference & Exhibition to address industry challenges and to share perspectives and strategies. View the post-conference blog post for an overview of the top challenges that dominated discussions – including T+2, Consolidated Audit Trail, and the impact of regulatory changes such as Uncleared Margin Rules – and to learn how operations professionals are addressing "seismic shifts" in the industry.
Read the blog post and watch the video


Other Events

Program Now Available! Join Us in San Francisco for SIFMA’s C&L Regional Seminar
Join SIFMA's Compliance & Legal Society in San Francisco on August 4th! The full-day program will feature presentations on topics like litigation and arbitration; the Department of Labor’s fiduciary standard; compliance and risk management; SEC exam priorities; and more! Register today, at an early bird rate, to connect with securities regulators and network with your fellow industry professionals.

120 Broadway, 35th Floor, New York, NY 10271 | 212.313.1000

1101 New York Avenue, NW, 8th Floor, Washington, DC 20005 | 202.962.7300


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