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.
- Dealings With Qualified Clients and Accredited Investors Depending upon an RIAs business model and investment strategies, it may be important to identify “qualified clients” and “accredited investors.” The Dodd-Frank Act authorized the SEC to change which clients are defined by those terms.
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.