More On Legal & Compliancefrom The Advisor's Professional Library
- Suitability and Fiduciary Duty Recommending suitable investments is more than just a regulatory obligation. Many investors bring cases claiming lack of suitability, so RIAs must continuously put the onus on clients to notify the advisor of changes in their financial situation.
- Agency and Principal Transactions In passing Section 206(3) of the Investment Advisers Act, Congress recognized that principal and agency transactions can be harmful to clients. Such transactions create the opportunity for RIAs to engage in self-dealing.
The bill now has key "yes' votes from Maine Republican Senators Olympia Snowe and Susan Collins along with Senator Scott Brown (R-Massachusetts); The three Senators have now signaled that they are on board to support what is formally called the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Democratic Senator from Nebraska, Ben Nelson, also said July 13, that he would support the reform bill, after stating July 12 that he still had concerns about it.