August 17, 2009

Editor's Choice for the Week of August 17, 2009

More On Legal & Compliance

from The Advisor's Professional Library
  • Regulatory Oversight of Investment Advisors Although the regulatory environment is in a state of flux, it is imperative that RIAs adhere to their compliance obligations. To ensure compliance, RIAs and IARs must fully understand what those obligations are.
  • 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.

Following two days of meetings by the Federal Reserve's Open Market Committee, on August 12 the FOMC said "Although economic activity is likely to remain weak for a time, the Committee continues to anticipate that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will contribute to a gradual resumption of sustainable economic growth in a context of price stability." See the full Fed release here, and read Forward Capital economist Richard Moody's reading of the Fed's tea leaves here. Also last week, the inflation number for July was unchanged.

The University of Chicago's Richard Thaler has written two pieces of interest--one on healthcare reform in The New York Times on August 16, the other in the Financial Times on the efficient market. Both are worth your time.

This week sees Producer Prices from the Bureau of Labor Statistics on Tuesday the 18th, along with housing starts as reported by the Census Bureau. Unemployment claims for the week ending August 15 are released Thursday morning the 20th, and on the 21st come sales of existing homes.

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