More On Legal & Compliancefrom The Advisor's Professional Library
- Using Solicitors to Attract Clients Rule 206(4)-3 under the Investment Advisors Act establishes requirements governing cash payments to solicitors. The rule permits payment of cash referral fees to individuals and companies recommending clients to an RIA, but requires four conditions are first satisfied.
- Trading Practices and Errors When SEC-registered investment advisors conduct annual audits of firm policies and procedures, they should pay close attention to trading practices. Though usually not required to, state-registered advisors should look at their trading practices and revise policies that do not fully protect clients.
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.