More On Legal & Compliancefrom The Advisor's Professional Library
- The Custody Rule and its Ramifications When an RIA takes custody of a clients funds or securities, risk to that individual increases dramatically. Rule 206(4)-2 under the Investment Advisers Act (better known as the Custody Rule), was passed to protect clients from unscrupulous investors.
- Anti-Fraud Provisions of the Investment Advisers Act RIAs and IARs should view themselves as fiduciaries at all times, whether they meet the legal definition or not. Deviating from the fiduciary standard of full disclosure while courting clients may cause the advisor significant problems.
It's a busy week, marked by Congressional hearings, earnings reports, and economic reports that could move the markets.
First up, though, Rep. Charles Rangel floated a plan last week to tax the "rich" to pay for healthcare reform Amid criticism from Republicans, and calls from some, including Warren Buffett, for another round of stimulus spending, President Obama defended stimulus part 1 in his weekly radio address.
Perhaps the biggest hearing of the week comes in the House on July 14, when Mary Schapiro is scheduled to testify on the current state of the SEC and its agenda before the capital markets subcommittee of Barney Frank's Financial Services Committee.
Other key Congressional hearings for the week include, in the Senate, a July 13 hearing by the Health, Education, Labor, and Pensions Committee on the Affordable Health Choices Act; on July 14, hearings on the Consumer Protection Agency in the Senate Banking Commitee, and on July 15, the same committee will hold hearings on regulating hedge funds.