More On Legal & Compliancefrom The Advisor's Professional Library
- 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.
- U.S. Securities and Exchange Commission Information This information sheet contains general information about certain provisions of the Investment Advisers Act of 1940 and selected rules under the Advisers Act. It also provides information about the resources available from the SEC to help advisors understand and comply with these laws and rules.
There are a number of Senate committee hearings of note this week. On Wednesay May 7, the Senator Chris Dodd's Banking, Housing and Urban Affairs Committee is holding hearing to examine "regulating and resolving institutions considered to be too big to fail." The next day the Committee's Subcommittee on Securities, Insurance and Investment will hold hearings to examine ways to strengthen the SEC's enforcement responsibilities.
That's the same day the Energy and Natural Resources Subcommittee onEnergy will hold hearings to examine ways "to improve grid reliability, increase clean energy deployment, enable consumer choice, and diversify our nation's energy supply," all of which are topics of interest to advisors whose clients take a green approach to investing.
Also on May 7, we can expect to see reports on initial jobless claims for the week, as well as first quarter numbers on productivity and labor costs, both of which are expected to show increases.
On Friday May 8, the Census Bureau will release its monthly report on wholesale trade, detailing figures on sales and inventories for the month of March. April unemployment figures will also be out that day with many wondering how they will compare to last months level of 8.5%