More On Legal & Compliancefrom The Advisor's Professional Library
- Proxy Voting RIAs are not required to vote proxies on behalf of their clients. However, when an RIA does assume responsibility for voting proxies, the firm’s policies and procedures should help to ensure that votes are cast in the best interest of clients.
- Conducting Due Diligence of Sub-Advisors and Third-Party Advisors Engaging in due-diligence of sub-advisors isnt just a recommended best practice it is part of the fiduciary obligation to a client. An RIA should be extremely reluctant to enter a relationship with a sub-advisor who claims the firms strategy is proprietary.
The Coalition for Indexed Products filed suit on January 16 in a Federal appeals court against the Securities and Exchange Commission over its December 17 decision to regulate equity indexed annuities as securities rather than insurance products. The coalition, a group of eight major insurance companies that issue fixed index annuities, including Allianz Life Insurance Co. of North America, charges in the suit that the SEC overstepped its authority in its ruling. That was the expressed position of SEC Commissioner Troy Parades when he cast the lone dissenting vote on December 17.
For further information on the suit and the ruling, please click here to view a news story from our sister company, National Underwriter