More On Legal & Compliancefrom The Advisor's Professional Library
- 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.
- 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.
Those markets will likely respond on April 5 to the National Association of Realtor's release of pending home sales for February; on April 6 to release of the minutes of the FOMC's March 16 meeting; on April 7 to the Fed's release of consumer credit numbers for February; on April 8 to the latest retail sales figures; and on April 9, Friday, to wholesale inventories for February from the Commerce Department.
The House and Senate return from their Easter recess this week, and beginning on Wednesday, April 7, the Financial Crisis Inquiry Commission begins three consecutive days of hearings.
The FDIC's Sheila Bair has an op-ed in April 5's Wall Street Journal touting the FDIC model as the best one to ensure true financial services reform. The Federal Reserve's Ben Bernanke is scheduled to deliver major speeches on April 7 in Dallas and on April 8 back in Washington, DC. On April 4, U.K. Prime Minister Gordon Brown said the major Western nations were close to agreeing on a worldwide tax on banks to help protect against future bank failures.
In an April 3 Op-Ed in The New York Times, hedge fund manager Michael Burry of Scion Capital excoriates Alan Greenspan and the Fed for failing to predict the housing meltdown .
The April 4 New York Times Sunday Business section contains three stories worthy of note: one, by Natasha Singer, discusses the intricacies of a Merck lawsuit settlement that may have widespread implications for corporate governance; the second is a listing of CEO pay at a number of major U.S. companies. Finally, as March Madness ebbs with the men's national collegiate basketball championship being played April 5, Yale's Robert Shiller turns his restless mind to that serious financial research topic: what's the best strategy for the NFL draft?--in his regular column on April 4.