AICPA Testifies on Draft Investment Advisers Bill

Journal of Accountancy, August 1992 | Go to article overview
Save to active project

AICPA Testifies on Draft Investment Advisers Bill


The American Institute of CPAs emphasized the need for reform of the Investment Advisers Act of 1940 to focus on activities giving rise to investment adviser fraud and abuse--namely, holding clients' funds or securities for investment purposes or recommending and selling securities to the same client.

In testimony before the House Energy and Commerce Subcommittee on Telecommunications and Finance, Charles R. Kowal, chairman of the AICPA personal financial planning legislation and regulation subcommittee, generally applauded a discussion draft of a bill by Congressmen Edward J. Markey (D-Mass.) and Rick Boucher (D-Va.).

Titled the Investment Advisers Regulatory Enhancement and Disclosure Act of 1992, the bill would, among other things,

* Direct the Securities and Exchange Commission to conduct a public rulemaking that would result in a formal policy on what constitutes investment advice that is "solely incidental to" the practice of accountancy.

* Provide the SEC with additional funding targeted to investment adviser regulation and inspections.

* Establish a private right of action against advisers who engage in fraud.

An earlier version of the bill, introduced last year by Congressman Boucher as HR 2412, was not supported by the AICPA because it expanded the definition of investment adviser to include all those, including accountants, using the term "financial planner" or similar terms and because it narrowed the current exclusion available to accountants under the 1940 act.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

AICPA Testifies on Draft Investment Advisers Bill
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?