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.
- Do’s and Don’ts of Advisory Contracts In preparation for a compliance exam, securities regulators typically will ask to see copies of an RIAs advisory agreements. An RIA must be able to produce requested contracts and the contracts must comply with applicable SEC or state rules.
Senate Republicans are urging regulators to slow down implementation of Dodd-Frank by extending the comment periods on their rule proposals and conducting more “rigorous” analysis on those rules—including one on putting brokers under a fiduciary standard of care.
As Sen. Tim Johnson, D-S.D., chairman of the Senate Banking, Housing, and Urban Affairs Committee conducts his first hearing on Thursday on regulators’ implementation of Dodd-Frank, Senate Republicans sent a letter on Tuesday to all the top regulators asking that they “not sacrifice quality and fairness in exchange for speed,” in fulfilling their statutory mandate under Dodd-Frank.
The letter was sent to Federal Reserve Chairman Ben Bernanke; Securities and Exchange Commission (SEC) Chairman Mary Schapiro; Gary Gensler, chairman of the Commodities Futures Trading Commission (CFTC); Sheila Bair, chairman of the Federal Deposit Insurance Corp. (FDIC); and John Walsh, acting director of the Comptroller of the Currency.
The Republican Senators, including Richard Shelby, R-Ala., ranking minority member on the committee, and Michael Crapo, R-Idaho, asked regulators to extend their comment periods on proposed rules under Dodd-Frank from 40 days to 60.
The Senators pointed to the request for a more rigorous economic analysis raised by SEC Commissioners Kathleen Casey and Troy Paredes in the SEC’s study under Section 913 of Dodd-Frank, regarding putting brokers under a fiduciary standard of care.