More On Legal & Compliancefrom The Advisor's Professional Library
- Whistleblowers A whistleblower is any individual providing the SEC with original information related to a possible violation of federal securities law. The Dodd-Frank Act established a whistleblower program that enables the SEC to reward individuals who voluntarily provide such information.
- 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.
The bill, approved by a vote of 402-11, now moves to the Senate.
Ron Kuykendall, a spokesperson for the National Association of Real Estate Investment Trusts (NAREIT) says that the bill will "help the U.S. real estate community, through listed REITs, raise very much needed equity from non-U.S. investors. And it would provide a source of capital" for the U.S. real estate market.
FINRA released a regulatory notice last year (Notice 09-09), which required that 18 months following the conclusion of a non-listed REIT's offering, the REIT must publish a per-share value based on an appraisal of the REIT's assets and operations so that broker-dealers could include this value on their customers' account statements.