More On Legal & Compliancefrom The Advisor's Professional Library
- 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.
- Advertising Advisor Services and Credentials Section 206 of the Investment Advisers Act contains the anti-fraud provision of the statute and ensures that RIAs advertising and marketing practices are consistent with the fiduciary duty owed to clients and prospective clients.
Monday, August 30, is the deadline for submitting comments to the Securities and Exchange Commission to "inform its study of the obligations and standards of care of broker-dealers and investment advisers providing personalized investment advice about securities to retail investors," as the SEC put it in releasing the call for public comments on July 27.
The study is required under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which became law on July 21, 2010 after a protracted legislative battle.
In his latest blog posting, Investment Advisor Editor-At-Large Bob Clark shares with readers how to ensure your comments stand out from the crowd at the SEC, using the insights of Kristina Fausti of Fi360.
To make your comments, visit the specific part of the SEC Web site that makes it easy to comment online on the fiduciary issue; you can see who has already submitted comments here; you can also comment on other issues from the Frank-Dodd reform bill in another part of the SEC Web site.