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.
Another crisis, another instance of Congress kicking the can the down the road. And, what else would the gridlocked lawmakers do other than create another committee to do the work it couldn’t? Remember the supercommittee? Turned out finding out a bipartisan solution was the panel’s kryptonite.
So it has come to this: On Friday the House caved and passed in a pro forma session a two-month extension of the payroll tax and the Senate concurred (and President Barack Obama signed it into law). Then Senate Majority Leader Harry Reid, D-Nev., and House Speaker John Boehner, R-Ohio, agreed to appoint a committee to world out a long-term solution to extend the tax break that puts more money into millions of American households pockets each week.
Now it’s time to start the hard work and advisors can do something: contact members of the payroll tax committee and urged them to get a deal done that sets politics aside and helps your clients.
The Democrats have named their committee members and the Republicans will soon follow suit. Here are the names of those on the committee and links to their websites. Don’t be like Congress and delay the important work. Your voice must be heard on this important issue.
Reid’s Democratic appointees are:
- Sen. Max Baucus of Montana, chairman of the Senate Finance Committee
- Sen. Jack Reed of Rhode Island
- Sen. Ben L. Cardin of Maryland
- Sen. Bob Casey of Pennsylvania
Rep. Nancy Pelosi of California, the minority leader, appointed: