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.
- Differences Between State and SEC Regulation of Investment Advisors States may impose licensing or registration requirements on IARs doing business in their jurisdiction, even if the IAR works for an SEC-registered firm. States may investigate and prosecute fraud by any IAR in their jurisdiction, even if the individual works for an SEC-registered firm.
Title VII, the two agencies say, provides for the comprehensive regulation of swaps and security-based swaps and includes definitions of key terms relating to such regulation. The title of the Dodd-Frank Act "requires the CFTC and the SEC, in consultation with the Board of Governors of the Federal Reserve System, to jointly further define the terms 'swap,' 'security-based swap,' 'swap dealer,' 'security-based swap dealer,' 'major swap participant,' 'major security-based swap participant,' 'eligible contract participant' and 'security-based swap agreement,' " the two agencies say in their release requesting public comments.
Title VII also requires the CFTC and SEC to jointly prescribe regulations regarding "mixed swaps" as necessary to carry out the purposes of Title VII.
The SEC and CFTC also have a series of email links on the two agencies' Web sites to facilitate public comment regarding regulatory reform rulemaking under the Dodd-Frank Act.
Read a story about the SEC and CFTC's meeting on May 6 "Flash Crash" from the archives of InvestmentAdvisor.com.