More On Legal & Compliancefrom The Advisor's Professional Library
- The Custody Rule and its Ramifications When an RIA takes custody of a clients funds or securities, risk to that individual increases dramatically. Rule 206(4)-2 under the Investment Advisers Act (better known as the Custody Rule), was passed to protect clients from unscrupulous investors.
- Nothing but the Best Execution Along with the many other fiduciary obligations owed by RIAs, firms owe a duty to seek best execution of clients transactions. If they fail to do, RIAs violate Section 206 of the Investment Advisers Act.
J. Bradley Bennett has been chosen to serve as the new head of FINRA’s Enforcement Division. The announcement was made Thursday, and Bennett will assume his new post on Jan. 1. He will be taking over from James Shorris, acting chief of enforcement; Shorris has served in the position since March, when Susan Merrill departed the organization.
Bennett, a partner at Baker Botts in Washington since 2001, specialized in financial and securities law violations. At FINRA, he will head up a staff of about 300 enforcement personnel in 17 offices throughout the U.S. He will be reporting to Stephen Luparello, vice chairman of FINRA.
Luparello said in a statement, "Brad will be a forceful advocate for investors, especially in dealing with those who would seek to violate the rules. I have known Brad for many years and he stands out for his understanding of securities laws."
Richard Ketchum, chairman and CEO of FINRA, said, "Brad will bring extensive knowledge and experience in dealing with violations of securities rules to FINRA at this critical time. It is imperative that FINRA aggressively deal with wrongdoing in the industry to help rebuild investor trust and confidence in the markets."
Bennett began his career at the SEC, where he served in the Division of Enforcement as a senior attorney. Before joining Baker Botts, he was an attorney at Miller, Cassidy, Larocca & Lewin. Currently he is an adjunct professor of securities regulation at Catholic University's Columbus School of Law.