More On Legal & Compliance
from The Advisor's Professional Library- 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.
- Using Solicitors to Attract Clients Rule 206(4)-3 under the Investment Advisors Act establishes requirements governing cash payments to solicitors. The rule permits payment of cash referral fees to individuals and companies recommending clients to an RIA, but requires four conditions are first satisfied.
The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) announced May 10 that the two agencies have formed a joint committee that will address emerging regulatory issues. The Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues was one of the 20 recommendations included in the agencies' harmonization report issued last year.
The two agencies say that the joint Committee will develop recommendations on emerging and ongoing issues relating to both agencies. The first item on the committee's agenda was conducting a review of the market events of Thursday, May 6, in which the Dow Jones dropped 1,000 points.
The SEC and CFTC say that the Committee's charter provides for a broad scope of interest, including:
o Identifying of emerging regulatory risks.
o Assessing and quantifying the impact of such risks and their implications for investors and market participants.
o Furthering the SEC's and CFTC's efforts on regulatory harmonization.
Chairman Mary Schapiro of the SEC and Chairman Gary Gensler will serve as co-chairs of the Joint Committee.
