More On Legal & Compliancefrom The Advisor's Professional Library
- Scope of the Fiduciary Duty Owed by Investment Advisors A fiduciary obligation goes beyond the suitability standard typically owed by registered representatives of broker-dealer firms to clients. The relationship is built on the premise that the advisor will always do the right thing for the person or entity receiving advice.
- 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.
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.