More On Legal & Compliancefrom The Advisor's Professional Library
- Updating Form ADV and Form U4 When it comes to disclosure on Form ADV, RIAs should assume information would be material to investors. When in doubt, RIAs should disclose information rather than arguing later with securities regulators that it was not material.
- Use and Misuse of Social Media Social media is an inexpensive and effective way to communicate with established and prospective clients. Nevertheless, when RIAs utilize social media to promote their advisory practices, they risk compliance problems for their firms.
Signs of the faltering economic environment continue to unfold as the federal government seized Washington Mutual (WaMu) on September 25 in what is being called the largest bank failure in history. Congress continues to debate the $700 billion financial bailout today even as talks were dealt a setback September 25 when a group of House Republicans sought to institute an alternative plan.
That plan, according to published reports, is to create a program by which the government would establish an expanded insurance system financed by the banks that would rescue individual home mortgages. However, it seems as that plan has been nixed as the House Republicans are now back on board and have rejoined the negotiations on the $700 billion bailout plan.
As for WaMu, published reports say that regulators brokered a sale of virtually all of WaMu's assets--totaling $307 billion--to JPMorgan Chase for $1.9 billion. It was only six months ago that JPMorgan acquired Bear Stearns.