More On Legal & Compliancefrom The Advisor's Professional Library
- 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.
- 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.
The House reports back for duty on April 21, while the Senate starts up on April 20, when it will consider the Fraud Enforcement and Recovery Act of Sen. Patrick Leahy (D-Vermont).
Finally, in the good news/bad news category, NAPFA got some coverage from New York Times personal finance columnist Ron Lieber, whose advisor--a NAPFA member--allegedly stole some of his money. At least Lieber quoted Diahann Lassus, and provided a link to the NAPFA site.