More On Legal & Compliancefrom The Advisor's Professional Library
- Using Solicitors to Attract Clients Rule 206(4)-3 under the Investment Advisors Act establishes requirements governing cash payments to solicitors. The rule permits payment of cash referral fees to individuals and companies recommending clients to an RIA, but requires four conditions are first satisfied.
- RIAs and Customer Identification Just as RIAs owe a duty to diligently protect their clients privacy and guard against theft, firms also play a vital role in customer identification. Although RIAs are not subject to an anti-money laundering rule, securities regulators expect advisors to address these issues in their policies and procedures.
Setting the ball rolling in implementing its Troubled Asset Relief Program (TARP) under the Economic Stabilization Act, the Treasury Department announced October 13 that it had hired Chicago-based EnnisKnupp and Associates to serve as its investment advisor to help implement TARP.
In announcing the hire, Treasury said EnnisKnupp and Associates will "begin work immediately to help the Department administer the complex portfolio of troubled assets the Department will purchase." Treasury said it hired the investment consultant "for assistance as it evaluates potential asset managers and other vendors." The firms' duties also will include "developing and maintaining investment policies and guidelines and assisting with the oversight of the portfolio's multiple asset managers. This oversight will include helping Treasury to determine asset allocations for each manager, evaluating the performance and costs, identifying conflicts of interest and identifying strategic investment and market issues impacting the overall portfolio," Treasury said.
EnnisKnupp will also "conduct research on mortgage whole loan asset managers and on servicing organizations. Additionally, the firm will identify qualified minority--and women-owned businesses--to provide services for the portfolio," Treasury said.
Treasury said it hired EnnisKnupp using a procurement contract under the Federal Acquisition Regulation. Treasury said it "competitively solicited offers from six firms under compelling urgency to quickly establish the Troubled Asset Relief Program. Three firms made offers."