More On Legal & Compliancefrom The Advisor's Professional Library
- Trading Practices and Errors When SEC-registered investment advisors conduct annual audits of firm policies and procedures, they should pay close attention to trading practices. Though usually not required to, state-registered advisors should look at their trading practices and revise policies that do not fully protect clients.
- Conducting Due Diligence of Sub-Advisors and Third-Party Advisors Engaging in due-diligence of sub-advisors isnt just a recommended best practice it is part of the fiduciary obligation to a client. An RIA should be extremely reluctant to enter a relationship with a sub-advisor who claims the firms strategy is proprietary.
The Financial Stability Oversight Council (FSOC) plans to hold its third public meeting on Tuesday, Jan. 18, at the U.S. Department of the Treasury building in Washington.The FSOC, created under the Dodd-Frank Act, is comprised of the nation's top regulators and is charged with identifying threats to the nation's financial stability.
According to the FSOC, the agenda for the Jan. 18 meeting is as follows:
- Study and Recommendations on the Volcker Rule Contained in Section 619 of the Dodd-Frank Act
- Study and Recommendations on the Concentration Limit Contained in Section 622 of the Dodd-Frank Act
- Notice of Proposed Rulemaking Regarding Designation of Nonbank Financial Companies Contained in Section 113 of the Dodd-Frank Act
- Update on Mortgage Servicing and Foreclosure Issues
- Resolution approving minutes of the November 23, 2010, FSOC Meeting
At the second FSOC meeting held last November, the Council received an update from its staff on improving oversight of the swaps and derivatives markets and its review of the mortgage industry.