More On Legal & Compliancefrom The Advisor's Professional Library
- Recent Changes in the Regulatory Landscape 2011 marked a major shift in the regulatory environment, as the SEC adopted rules for implementing the Dodd-Frank Act. Many changes to Investment Advisers Act were authorized by Title IV of the Dodd-Frank Act.
- Do’s and Don’ts of Advisory Contracts In preparation for a compliance exam, securities regulators typically will ask to see copies of an RIAs advisory agreements. An RIA must be able to produce requested contracts and the contracts must comply with applicable SEC or state rules.
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.