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.
- Nothing but the Best Execution Along with the many other fiduciary obligations owed by RIAs, firms owe a duty to seek best execution of clients transactions. If they fail to do, RIAs violate Section 206 of the Investment Advisers Act.
The Federal Reserve Board cut the Fed Funds rate by 75 basis points to 3 1/2% on January 22 before the U.S. markets opened. The cut came after international markets plunged on January 21 and 22, and amid widespread concerns over a potential recession in the United States and abroad.
In its statement accompanying the move, the Fed says it made the extraordinary cut, outside of its regular Federal Open Market Committee (FOMC) meeting, which is scheduled to be held January 29-30, because of the "weakening of economic outlook and downside risks to growth." On December 11, the FOMC lowered its target for the Fed Funds rate 25 bps to 4.25%.
The Fed Board of Governors announced January 22 that it had also approved a 75 bps decrease in the discount rate to 4%.