More On Legal & Compliancefrom The Advisor's Professional Library
- Code of Ethics Rule The Code of Ethics Rule, found in Rule 204A-1, uses severe consequences for violation to help ensure investment advisors will do the right thing.
- Agency and Principal Transactions In passing Section 206(3) of the Investment Advisers Act, Congress recognized that principal and agency transactions can be harmful to clients. Such transactions create the opportunity for RIAs to engage in self-dealing.
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."