More On Legal & Compliancefrom The Advisor's Professional Library
- Proxy Voting RIAs are not required to vote proxies on behalf of their clients. However, when an RIA does assume responsibility for voting proxies, the firm’s policies and procedures should help to ensure that votes are cast in the best interest of clients.
- 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.
In a major turnaround, Senate Majority Leader Harry Reid (R-Nevada) announced Monday, October 26, that he plans to bring a healthcare bill to the Senate floor that includes a public option that features an "opt out" clause, allowing states to choose if they want to participate.
According to published reports, Reid made the decision without commitments of support from 60 senators, meaning that he wouldn't have the votes to overcome any filibuster on the measure by Republicans.
Those published reports also quoted an aide to Reid as calling the move a "risky strategy." However, the aide said because Reid believes including the public option is the right approach, the senator is "cautiously optimistic he can get the votes necessary."