Following on from its "New Foundation" proposals in June, the Obama Administration has introduced a new bill in Congress cited as the Investor Protection Act of 2009 (PDF), which will make a number of changes to the regulatory powers of the Securities and Exchange Commission. These changes include the promulgation of rules requiring broker-dealers and investment advisers to act solely in the best interest of retail clients (and potentially others); prohibiting certain sales practices; eliminating conflicts of interest and compensation schemes deemed to be contrary to investor interests; compelling disclosure prior to the sale of interests in mutual funds; limiting or banning mandatory arbitration provisions in customer agreements; and providing financial incentives for whistleblowers and protection for them.
The proposed new law amends the Securities Exchange Act of 1934. It would allow the SEC in any judicial or administrative action that results in monetary sanctions exceeding $1m
This article is only available in full to Complinet Complete North America Subscribers who are logged in.
Please log in to see if you can view this content.
