Notes

In general, Regulation Matters deals with the rules governing representatives of financial advisors. Regulated investment advisers are required to register with the SEC or the Securities and Exchange Commission, to pay a registration fee, and to register their name with the state Bar Association. There are many rules and reporting requirements that apply to investment advisers, including the rules concerning the type of advertising they can engage in. Regulated financial advisors must also file an annual report with the SEC detailing their activities for the previous year, as well as providing financial advice to clients and obtain certifications from government authorities.
Because of the highly regulated environment concerning financial advisers, it is often a challenge for solicitors and in compliance consultants to find work. In addition, in order to be a qualified and licensed investment adviser, one must pass the comprehensive tests required by the SEC. However, even after a firm has been accredited, there are still important rules regarding the conduct of the advisor and the content of the reports that the firm must prepare and provide to clients. These rules cover the compensation of the adviser, the investment adviser's fiduciary duties, the use of the firm's name or its logo, the nature of the firm's business, and the rules about the advertising of services provided by the adviser.

There are three types of in compliance consultants. These are independent in compliance consultants, registered agents and registered brokers. Each has distinct regulatory duties and regulations that govern the way in which they could provide financial advice and the methods they use to do so. A registered agent is an individual who possesses a license, authorization or certificate issued by the SEC to act on behalf of an investment adviser. Registered agents also have the power to execute orders based on the directives of the registered broker, and they are obliged to keep complete records of all communications from the client and the registered agent.

Some of the services that registered agents normally render include advising a client on how to obtain the maximum return on investment, manage his funds, make wise investments, protect his capital, retain his existing wealth, and plan for future goals. Registered agents also provide investment advisers with reports, client files and other information related to the client's accounts. This information is used to carry out the investment adviser's duties and to ensure that these are in accordance with the law. In addition to this, they also help brokers access their client's files and records, identify those areas that require further inquiry and assistance, and provide other services such as filing paperwork and legal documents or assisting the brokers in the preparation of final reports.

The third type of a compliance consultant is an independent investment adviser. As the name implies, an independent adviser does not have any registration with the SEC. This means that he or she is not regulated by the SEC and therefore the rules that apply to registered agents do not apply to this type of investment adviser. An independent adviser has no regulatory authority and cannot be held personally liable for providing any specific advice to a client as each case is unique.

To make it easy for you to understand, we have created a glossary of terms that you should become familiar with when discussing investment advisers. It does not necessary mean that all such terms will be mentioned in every discussion about registered investment advisers. Rather, we are trying to explain the most general concepts that you may encounter when discussing this topic. If in financial securities lawyer , contact someone who is a lawyer or a financial advisor. You will then be able to understand the details of this subject.
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