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.
- 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.
The business week of July 26 ended with a report from the Commerce Department that economic growth slowed in the second quarter, but buoyant news from other reports, including strong corporate earnings, helped the Dow rise 7.1% for the month; the Dow and the S&P 500 both had their best months since July 2009.
This week begins on August 2 with the ISM manufacturing index numbers for July and the Commerce Department's release of construction spending for June. NYSE Euronext reports its earnings as well. There are two big speeches on tap: Fed Chairman Ben Bernanke addresses challenges for the economy and state governments at the Southern Legislative Conference in Charleston, South Carolina, while Treasury Secretary Tim Geithner discusses the next steps for financial reform in an address at NYU's Stern School of Business in New York.
On Tuesday, August 3, we learn about auto sales for July, while the Commerce Dept. reports on personal income and spending for June. Also due for release: pending home sales for June and factory orders for June.
Wednesday, August 4 brings the ADP national employment report for July.
Also on the 5th, Canada releases its jobs report, while Hartford Financial, Allstate, and Prudential announce their Q2 earnings. Finally, the Federal Reserve and the FDIC hold a hearing on updates for assessing performance under the Community Reinvestment Act.
On Friday the 6th comes the Bureau of Labor Statistics' employment report for July, along with the Fed's report on June consumer credit.
We were also pleased to hear that New York City Mayor Michael Bloomberg named one of our favorite smart people and money managers, Ranji Nagaswami, to be the city's first chief investment advisor. Nagaswami, a former CIO at AllianceBernstein, a speaker at several Investment Advisor conferences and, more recently, a member of WealthManagerWeb.com's 2010 advisory board for its Top Women in Wealth, will also chair the New York City Employees' Retirement System (NYCERS).