The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Brokers Have to Know Thier Clients Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, March 19, 2004

Brokers Have to Know Thier Clients

by: Caitlin  Pickall

The Securities Industry Association, Investment Counsel Association of America and Financial Planning Association issued a joint statement yesterday to clarify a customer identification rule under the USA Patriot Act of 2001.

In 2003, the SEC and Treasury Department issued a rule under the Act requiring broker-dealers to adopt a written Customer Identification Program (CIP) with procedures for verifying and documenting customer identity, providing customers with notice that this is happening and determining if customers appear on designated terrorist lists.

The rule allowed broker-dealers to rely on other financial institutions to perform the CIP tasks, as long as those institutions were subject to certain anti-money laundering regulations. Since investment advisors were not subject to the specified rules, broker-dealers werenít allowed to rely on advisers for CIP verification.

This is no longer the case. The SEC issued a No Action letter on February 12, 2004 allowing broker-dealers to rely on investment advisers for CIP verification until the rules governing advisers are finalized.

"Because investment advisers and broker-dealers often work together in providing services to the investing public, coordination of broker-dealers and investment advisers is helpful in broker-dealersí effective implementation of the customer identification rule," the industry groupsí statement said.  

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2020: Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use