More On Legal & Compliancefrom The Advisor's Professional Library
- The Custody Rule and its Ramifications When an RIA takes custody of a clients 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.
- 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.
Securities and Exchange Commissioner Annette L. Nazareth announced her intention to leave the Commission to return to the private sector October 2. In her nine years at the Commission, as a Commissioner and previously as Director of the SEC's Division of Market Regulation, the SEC noted in a release that, Nazareth "has applied her financial markets expertise to a broad range of issues affecting investors and the securities markets." Nazareth has not set a date for her departure from the Commission, but has notified President Bush that she does not wish to be re-nominated, the SEC said in the release. Her term ended on June 5, 2007, but Commissioners may remain in their positions for up to 18 months beyond a term's end, unless a successor is appointed sooner.
With Nazareth's departure, the SEC will now have to replace two of its Commissioners, as Roel Campos left the Commission in September to join the law firm of Cooley Godward Kronish.