7.10.2009 The Treasury Department submitted the Investor Protection Act of 2009 to Congress in an added effort to move the Obama Administration’s regulatory reform agenda forward. The legislation outlines steps to establish consistent standards for those who provide investment advice about securities, to improve the timing and the quality of disclosures, and to require accountability from securities professionals. The legislation seeks to

  • Establish consistent standards for broker-dealers and investment advisers;
  • Give the SEC the authority to restrict or limit mandatory arbitration;
  • Give the SEC the authority to regulate the quality and timing of fund disclosures;
  • Clarify the SEC’s authority to conduct consumer testing;
  • Expand protections for whistleblowers;
  • Harmonize liability standards so the SEC can pursue those who aid and abet securities fraud;
  • Require accountability of securities professionals through the financial services industry; and
  • Establish a permanent investor advisory committee.

Click http://www.ustreas.gov/press/releases/tg205.htm to access the Treasury fact sheet. Click http://www.treas.gov/press/releases/docs/tg205071009.pdf to access the proposed legislation.