Registered Rep.: Q&A With Kit Addleman


With the SEC busy implementing Dodd-Frank, and the industry anxiously awaiting each development, Clear Thinking sought out the opinions of someone who has seen things from both sides of the regulatory playing field. Both at the SEC and in her current work on behalf of industry clients, Kit Addleman has seen the industry up close and has some keen insights into what impact the industry can expect from Dodd-Frank.

Are you hearing brokers and RIAs talking about the impact of Dodd-Frank? If so, what parts of the Act are they discussing?

While registered reps are discussing the aspects of Dodd-Frank, including standards of care, auditor inspection issues and disclosures if they use securities in lending, the more extensive conversations appear to be occurring in the investment adviser arena. Primarily this results from Dodd-Frank's elimination of the private adviser exemption, effective immediately with passage of the Act, and from the SEC's need to engage quickly in rulemaking and provide definitions to the new exemptions. First, there are all the private funds that now may be required to register. For example, real estate funds and oil and gas funds are asking substantial questions about whether there may be other exemptions available and whether Dodd-Frank effectively addresses issues specific to their business. Other advisers who are already registered are talking more about the records required for their investment funds, family office concerns under the new definitions, and updates to client information needed to ensure that clients remain "qualified." And, investment advisers are talking frequently about the likelihood of a self-regulatory organization, both as it relates to a possible uniform standard of care and to the SEC's study on enhancing investment adviser examinations.

Excerpt from Registered Rep., Nov. 18, 2011. To view the full article, click here.

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