More On Legal & Compliance
from The Advisor's Professional Library- The Custody Rule and its Ramifications When an RIA takes custody of a client’s funds or securities, risk to that individual increases dramatically. Rule 206(4)-2 under the Investment Advisers Act (better known as the Custody Rule), was passed to protect clients from unscrupulous investors.
- The New and Improved Form ADV Whether an RIA is describing its investment strategy in advertisements or in the new Form ADV Part 2, it is important the firm articulates material risks faced by advisory clients and avoids language that might be construed as a guarantee.
The use of furloughs is increasingly popular throughout many industries, but when employees are furloughed, the employer must make it clear that the employee must not do any work whatsoever. Given the myriad of remote access devices that we all have these days (including laptops, PDAs, e-mail, voice mail), it is likely that some exempt employees will be inclined to check their e-mail, return phone messages, or otherwise "work" while on furlough. However, as exempt employees are entitled to pay for any workweek in which any work is performed, employers should clearly advise that work is not authorized during any furlough period without advance written approval.
