From the May 2010 issue of Investment Advisor • Subscribe!

A Serious Man

More On Legal & Compliance

from The Advisor's Professional Library
  • How to Avoid Sabotaging Your Compliance Exam There is much more to compliance examination survival than knowing all of the rules. It helps to understand why the rules were put in place—and to recognize that examiners are not the enemy.
  • 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.

Before a room of people or in an intimate dinner or an interview with a journalist, Tom Giachetti is never at a loss for words. Whether it's talking about his New Jersey childhood or explaining to a room of advisors why having a formal Investment Policy Statement may not be the best idea in the world (unless it has some specific limiting language and has been signed by the client, for a start), Giachetti can seem glib. But that golden tongue masks a deadly serious approach to the law and giving advice that I was reminded of when I asked him in the interview for this article about the meaning of, to me at least, a confusing Supreme Court ruling that had taken place the day before the interview regarding mutual fund advisors' fees.

After all, I figured, Mr. Loquacious could give me a quick, juicy quote that I could use to spice up a news story we were doing on the ruling. I was wrong. "Jamie," Giachetti said quickly, after ascertaining exactly which Scotus ruling I was referring to, "I can't comment; I haven't studied the ruling." It seems that Mr. Giachetti likes to know what he's talking about before he opens his mouth.

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