More On Legal & Compliancefrom The Advisor's Professional Library
- Risk-Based Oversight of Investment Advisors Even if the SEC had a larger budget and more resources, it is doubtful that the Commission would have the resources to regularly examine all RIAs. Therefore, the SEC is likely to continue relying on risk-based oversight to fulfill its mission of protecting investors.
- Client Commission Practices and Soft Dollars RIAs should always evaluate whether the products and services they receive from broker-dealers are appropriate. The SEC suggested that an RIAs failure to stay within the scope of the Section 28(e) safe harbor may violate the advisors fiduciary duty to clients, so RIAs must evaluate their soft dollar relationships on a regular basis to ensure they are disclosed properly and that they do not negatively impact the best execution of clients transactions.
The IRS issued guidance on Friday for executors who plan to opt out of the estate tax and have carryover basis rules apply for estates of people who died in 2010.
The IRS said an executor who chooses to opt out of the estate tax must file Form 8939, Allocation of Increase in Basis for Property Acquired from a Decedent, by Nov. 15. The IRS said it expected to issue Form 8939, which can currently be viewed in draft form, and related instructions early in the autumn.
The agency noted that the Economic Growth and Tax Relief Reconciliation Act of 2001 repealed the estate tax for people who died in 2010. However, the estate tax for those who died in 2010 was reinstated by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The new law allows executors to elect to be governed by the repealed 2001 carryover basis provisions.