More On Legal & Compliancefrom The Advisor's Professional Library
- Best Practices for Working with Senior Investors Securities examiners deal harshly with RIAs that do not fulfill their fiduciary obligations toward senior investors, as the SEC and state securities regulators view older investors as particularly vulnerable and in need of protection.
- Client Commission Practices and Soft Dollars RIAs should always evaluate whether the products and services they receive from broker-dealers are appropriate. The SEC suggested that an RIAs failure to stay within the scope of the Section 28(e) safe harbor may violate the advisors fiduciary duty to clients, so RIAs must evaluate their soft dollar relationships on a regular basis to ensure they are disclosed properly and that they do not negatively impact the best execution of clients transactions.
AIG, the giant insurer that was nationalized by the government because of its exposure to subprime mortgages, said that it has used $90.3 billion of the credit line it received from the Federal Reserve Bank in September. On October 22, AIG's government-appointed CEO, Edward Liddy, said AIG may need more than $122.8 billion to continue operations.
There were published reports that two additional U.S.-based insurers--MetLife, which reports earnings October 29, and Prudential--might seek government funds from the Treasury Department's $700 billion purse to shore up their operations.
In The Netherlands, the big insurer Aegon--parent company of TransAmerica--said it might take advantage of the Dutch government's capital injection program that ING has already tapped into.