More On Legal & Compliancefrom The Advisor's Professional Library
- The Need for Thorough and Effective Policies and Procedures Whethere an advisor is SEC or state-registered, RIAs must revise their policies and procedures to address significant compliance problems occurring during the year, changes in business arrangements, and regulatory developments.
- 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.
The former head of the International Monetary Fund, Dominique Strauss-Kahn, who stepped down in the midst of allegations of the rape of a New York chambermaid in 2011, is back in the news. This time it's in connection with a prostitution ring in his native France.
Strauss-Kahn is being held for questioning by French police in northern France, according to the BBC, in connection with an organized prostitution ring in which corporate funds were used to pay for sex. The case is known as the "Carlton affair" after the name of the Lille hotel in which clients were alleged to have been supplied with prostitutes.
While the charges were dropped in the New York case, several of the women involved in this case have admitted having sex with Strauss-Kahn. In addition, three of the eight male suspects are alleged to be connected with him. Strauss-Kahn has insisted that he did not know the women were prostitutes.
Paris-based Christian Fraser of the BBC has said that although there is no law against meeting with prostitutes, providing them to others and the misuse of corporate funds to pay for their services are both illegal activities.
Strauss-Kahn is alleged to have been a participant in sex parties in Washington and in Paris at the end of 2010 and beginning of 2011. One of the parties was allegedly organized by two of the suspects, Fabrice Paszkowski and David Roquet, and is thought to have occurred in the U.S. shortly before he was detained on the New York charge.
Prior to the eruption of the New York case last May, Strauss-Kahn was being considered as a possible Socialist candidate for this year's French presidential election in April.