More On Legal & Compliancefrom 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.
- Do’s and Don’ts of Advisory Contracts In preparation for a compliance exam, securities regulators typically will ask to see copies of an RIAs advisory agreements. An RIA must be able to produce requested contracts and the contracts must comply with applicable SEC or state rules.
On Monday, September 14, President Obama travels to Federal Hall in New York to speak about financial services reform, one year to the day after talks between Lehman Brothers and Barclays fell apart, leading Lehman to declare bankruptcy on September 15, 2008.. He's also expected to take the credit for the improvement in the financial markets since he took office; Treasury Secretary Geithner laid out those same claims in testimony last week before the Congressional TARP oversight panel.
Mohammed El-Erian and Laurence Fink discussed whether the financial system was safer in remarks at the Schwab Impact show on the evening of September 13.
Speaking of economic and markets health, Wealth Manager Editor-in-Chief Kate McBride reports that High Frequency Economics has some recession expectations for Japan and euroland, but is more sanguine on the U.S. economy.
As for actual economic reports, the Consumer Price Index for August will be released on the 15th. The consensus for the headline inflation rate for last month is for an 0.8% increase due mostly to a spike in oil prices; the consensus for the rate without the volatile food and energy sectors is for a more modest 0.1% increase; in July the headline rate was a minus 0.9%.
The Census department reports retail sales for August on the 15th. Absent volatile auto sales (the cash for clunkers program is expected to boost the numbers for August), the consensus among economists is for a 0.6% drop in sales.
The Bureau of Labor Statistics will release producer prices for August on September 15.
Weekly unemployment claims from the Department of Labor will be released on September 18. Last week's report showed a slight decline in initial claims week-over-week (though there were still 550,000 who filed claims in the week ending September 5) and in the four-week moving average.
In Congress, the Senate Finance Committee holds hearings on unemployment benefits on Tuesday morning the 15th, while in the afternoon, the Senate Energy Committee will hold a hearing on greenhouse gas trading program. On September 17, the House Financial Services Committee's Subcommittee on Oversight and Investigations is due to examine the role of technology in financial services oversight.