More On Legal & Compliancefrom The Advisor's Professional Library
- Privacy Policies and Rules Whether an RIA is SEC or state-registered, the firm must have policies and procedures in effect to protect clients privacy. Policies and procedures should explicitly require an RIA to send out its privacy notice each year.
- RIAs and Customer Identification Just as RIAs owe a duty to diligently protect their clients privacy and guard against theft, firms also play a vital role in customer identification. Although RIAs are not subject to an anti-money laundering rule, securities regulators expect advisors to address these issues in their policies and procedures.
Euro zone finance ministers agreed on October 12 to guarantee interbank loans for up to five years in a bid to thaw the credit squeeze on the continent, and pledged to inject additional capital into their banks following a meeting in Paris brokered by French President Nicolas Sarkozy. Further details for each country are expected to be announced simultaneously on Monday, October 13. U.S. Treasury Secretary Henry Paulson, after saying October 10 that the United States would consider acquiring equity stakes in ailing U.S. banks, was reported to be considering a similar guarantee for banks.
Meanwhile, Mitsubishi UFJ Financial was in talks with Morgan Stanley and U.S. and Japanese government officials on its previous $9 billion investment in the investment bank. On September 22, Mitsubishi agreed to invest the $9 billion to acquire about 21% of Morgan Stanley common and preferred stock at prices varying from $25/share to $31/share; Morgan Stanley stock has dropped 82% this year, and closed at $9.68 on October 10.