Editor's Choice: Week of June 1, 2009

More On Legal & Compliance

from The Advisor's Professional Library
  • Risk-Based Oversight of Investment Advisors Even if the SEC had a larger budget and more resources, it is doubtful that the Commission would have the resources to regularly examine all RIAs. Therefore, the SEC is likely to continue relying on risk-based oversight to fulfill its mission of protecting investors.
  • 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.   
Good news, bad news. It turns out the economy only shrank at an annual rate of 5.7% in the first quarter, not the preliminary estimate of 6.1%, the Commerce Department reported on May 29, but the FDIC's Sheila Bair said May 27 that the U.S. banking industry "still faces tremendous challenges," and that "asset quality remains a further concern" upon the release of its Quarterly Banking Profile Perhaps Treasury Secretary Geithner didn't read the report; as he arrived in China May 31, he proclaimed that the U.S. financial system "is in substantially better shape."

Major reports this week include May retail sales numbers on June 4, and May unemployment figures on June 5.

Also, look for onsite news coverage from IA staff this week from the Pershing LLC conference and the NAPFA national gathering.

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