More On Legal & Compliancefrom The Advisor's Professional Library
- Privacy Policies and Rules Whether an RIA is SEC or state-registered, the firm must have policies and procedures in effect to protect clients privacy. Policies and procedures should explicitly require an RIA to send out its privacy notice each year.
- 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.
In a late-night session and after extensive procedural maneuverings, the Senate last night on Thursday, July 22, approved a $30 billion fund that community banks can access to fund more business loans.
The move came as an amendment to a small business lending bill.
It is uncertain what, if any, other amendments Senate leaders will allow to be offered, which means that credit unions may again fall short in their effort to win approval for an increase in the cap on member business loans from 12.25% of assets to 27.5% of assets. Sen. Mark Udall (D-Col.) has sponsored an amendment to permit that increase.
Last night's vote on the amendment was 60-39 along party lines, with the exception of two Republicans who supported the amendment.
In addition to the bank fund, the bill also includes $12 billion in tax incentives and changes to business lending programs.
Claude R. Marx, the writer of this report, is the Washington, D.C., correspondent for Advisor Media Group's sister publication Credit Union Times.