More On Legal & Compliancefrom The Advisor's Professional Library
- Disaster Recovery Plans and Succession Planning RIAs owe a fiduciary duty to clients to prepare for disasters and other contingencies. If an RIA does not have a disaster recovery plan, clients financial well-being may be jeopardized. RIAs should also engage in succession planning, ensuring a smooth transaction if an owner or principal leaves.
- 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.
Last week we learned we'd need to wait until at least July 12 before knowing the final shape of financial services reform, as Congress broke first for Senator Robert Byrd's memorial and then for the Fourth of July. At week's end we learned that while unemployment declined in June, the actual number of jobs declined.
Following a weekend interview with the strategists behind the Fiserv-AdviceAmerica merger and an exploration of the compliance concerns revolving around social networking, this week we see multiple reports on retail sales and multiple decisions in Europe on interest rates and limiting bank bonuses. Next week should bring cloture and closure on financial reform and the beginning of what may prove to be an interesting earnings season.
On Tuesday, July 6, the Institute for Supply Management puts out its June service-sector index, while Israeli Prime Minister Benjamin Netanyahu makes his delayed visit to Washington to meet with President Obama.
On Wednesday, July 7, the European Parliament is scheduled to vote on new rules to cap bankers' cash bonuses, while both the European Central Bank and the Bank of England issue statements on their fiscal policies.
That same day, we get the first retail sales data of the week with the ICSC-Goldman Sachs retail store sales report, along with the Redbook retail report.
On Thursday, July 8, the Federal Reserve releases its consumer credit report for May, the Census Bureau releases its chain store sales report, and the Department of Labor reports on first-time weekly jobless claims.
Much of the world will be in front of their television sets for the World Cup final match in Johannesburg on Sunday, July 11, and many baby boomers will feel their youth slipping further away on Wednesday, July 7, as Richard Starkey, aka Ringo Starr, turns 70.