From the March 2009 issue of Research Magazine • Subscribe!

ICI Shares Fund-Industry Wish List

More On Legal & Compliance

from 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.
  • Advertising Advisor Services and Credentials Section 206 of the Investment Advisers Act contains the anti-fraud provision of the statute and ensures that RIAs’ advertising and marketing practices are consistent with the fiduciary duty owed to clients and prospective clients.   

The head of the fund-industry's advocacy group has outlined the regulatory reforms that most need Washington's attention. Here's the list, compiled by Paul Schott Stevens of the Investment Company Institute:

o Establish a single U.S. capital markets regulator for the SEC and Commodity Futures Trading Commission.

o Update the securities laws and harmonize laws that regulate brokers and investment advisors.

o Enlarge the mission; tough enforcement of securities laws must include smart oversight.

o Pay attention to agency management, including a better mix of disciplines on SEC staff, and

o Restructure staff offices.
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Please send your views on the wish list to jlevaux@researchmag.com.

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