More On Legal & Compliancefrom The Advisor's Professional Library
- U.S. Securities and Exchange Commission Information This information sheet contains general information about certain provisions of the Investment Advisers Act of 1940 and selected rules under the Advisers Act. It also provides information about the resources available from the SEC to help advisors understand and comply with these laws and rules.
- Anti-Fraud Provisions of the Investment Advisers Act RIAs and IARs should view themselves as fiduciaries at all times, whether they meet the legal definition or not. Deviating from the fiduciary standard of full disclosure while courting clients may cause the advisor significant problems.
The fallout from the subprime meltdown has affected homeowners, bankers, and investors, and now has settled on some of the top corner offices of Wall Street. On November 14, John Thain, CEO of NYSE Euronext since 2006 and the New York Stock Exchange since 2004, was named chairman and CEO of Merrill Lynch. Thain succeeds Stan O'Neal, who retired October 30 under the cloud of the firm's write-down of $7.9 billion related to its CDO and U.S. subprime mortgage portfolios, and the resulting loss of $2.3 billion for the third quarter. Before going to the NYSE, Thain, 52, was president and COO of Goldman Sachs, which is about the only big bank on Wall Street to have seen the subprime trainwreck coming and got off the tracks in time.
Meanwhile, Citigroup announced November 4 that Chairman and CEO Charles Prince "elected to retire" and that a search group that will include new Chairman Robert Rubin will seek a successor. That same day, the company acknowledged "significant declines since September 30, 2007 in the fair value of the approximately $55 billion in U.S. subprime related direct exposures in its Securities and Banking (S&B) business," and currently is projecting an $8 billion to $11 billion write-down from that exposure.