More On Legal & Compliancefrom The Advisor's Professional Library
- Differences Between State and SEC Regulation of Investment Advisors States may impose licensing or registration requirements on IARs doing business in their jurisdiction, even if the IAR works for an SEC-registered firm. States may investigate and prosecute fraud by any IAR in their jurisdiction, even if the individual works for an SEC-registered firm.
- Conducting Due Diligence of Sub-Advisors and Third-Party Advisors Engaging in due-diligence of sub-advisors isnt just a recommended best practice it is part of the fiduciary obligation to a client. An RIA should be extremely reluctant to enter a relationship with a sub-advisor who claims the firms strategy is proprietary.
One of those priorities has to do with making sure the financial services reform bill remains strong; Senator Chris Dodd said in an April 19 press conference that he plans on "moving forward this week with a bill" in the Senate. On "Meet the Press" on April 18, Treasury Secretary Timothy Geithner said he was very confident that "we're going to have the votes for a strong package of financial reforms." Another Administration official, the chair of the Council of Economic Advisers, Christine Romer argued in an April 17 speech that the current high rate of unemployment was due to a drop in demand, not a "separate, structural problem."
Economic reports include the Conference Board's leading indicators for March on April 19 (it was up 1.4% for the month), producer prices and existing home sales for March on April 22, and new-home sales and durable goods orders for March on April 23.
Congressional hearings include the Senate Finance Committee on taxing big banks under TARP and the House Financial Services Committee on the Lehman Brothers bankruptcy (featuring Mr. Geithner and Ben Bernanke) both on April 20, and the Senate Permanent Subcommittee on Investigations on the role of credit-ratings agencies in the financial crisis on April 23.