More On Legal & Compliancefrom The Advisor's Professional Library
- The New and Improved Form ADV Whether an RIA is describing its investment strategy in advertisements or in the new Form ADV Part 2, it is important the firm articulates material risks faced by advisory clients and avoids language that might be construed as a guarantee.
- Regulatory Oversight of Investment Advisors Although the regulatory environment is in a state of flux, it is imperative that RIAs adhere to their compliance obligations. To ensure compliance, RIAs and IARs must fully understand what those obligations are.
The Financial Services Committee of the U.S. House, chaired by Rep. Barney Frank (D-Massachusetts) will hold a hearing on Monday, January 5, at 2:00 PM Eastern time to discuss the Ponzi scheme allegedly perpetrated by Bernard Madoff and his firm, Bernard L. Madoff Investment Securities LLC.
In filing its charges against Madoff and asking a Federal judge in New York to freeze his assets and appoint a receiver for his business on December 11 (which was granted), the SEC quoted Madoff as saying that he had conducted a "giant Ponzi scheme" that amounted to at least $50 billion. The SEC confirmed that Madoff had met a December 31 deadline to supply to the Commission a list of his personal assets.
Rep. Paul Kanjorski (D-Pennsylvania), a member of the committee and chair of the House capital markets subcommittee, said in a December statement that hearings "will help us to discern whether or not the SEC had the resources needed to get the job done, how such a sizable scheme could have evaded detection for so long, and what new safeguards we need to put in place to protect investors." Kanjorski said that hearings on the Madoff scandal will help guide Congress "in undertaking the most substantial rewrite of the laws governing the U.S. financial markets since the Great Depression."
A live Webcast of the hearings is available through the Committee's Web site here.