More On Legal & Compliancefrom The Advisor's Professional Library
- Client Communication and Miscommunication RIA policies and procedures must specify what type of communications should be retained. The safest course of action is for RIAs to retain all communicationsto clients, from clients, and about client accounts. To comply with fiduciary obligations, communications must be thorough and not mislead.
- Books and Records Rule Thorough and complete books and records enable RIAs to demonstrate that they have fulfilled their fiduciary obligations to clients and complied with applicable rules and regulations.
In the continuing saga of investment con man Bernie Madoff and his victims Ron Stein, President of the Network for Investor Action and Protection, a not-for-profit foundation founded by former investors of Bernard L. Madoff Investment Securities LLC.,weighed in on the Madoff Trustee’s lawsuit against JPMorgan Chase.
“This action is appropriate and overdue,” Stein said in a statement Thursday. “The Trustee has drawn a clear line between the facilitators of the fraud and innocent victims of the fraud, and we believe his efforts to recover funds should be focused on the guilty parties. Innocent investors who had no knowledge of the fraud should be left alone.”
Irving Picard, the trustee seeking money for defrauded clients of Madoff, said he filed a $6.4 billion lawsuit accusing JPMorgan Chase of aiding Madoff’s fraud as his main banker.
Reuters notes the lawsuit is the second largest that Picard has filed against former Madoffclients or others he believes assisted in the estimated $65 billion Ponzi scheme.
JPMorgan, the No. 2 U.S. bank, was for more than 20 years the main banker for Bernard L. Madoff Investment Securities LLC, which the trustee is liquidating following its Dec.11, 2008 collapse. Picard must file "clawback" lawsuits to recover money lost in the fraud by the two-year anniversary of the Madoff firm's demise, according to the news service.