More On Legal & Compliancefrom The Advisor's Professional Library
- The New and Improved Form ADV Whether an RIA is describing its investment strategy in advertisements or in the new Form ADV Part 2, it is important the firm articulates material risks faced by advisory clients and avoids language that might be construed as a guarantee.
- Disaster Recovery Plans and Succession Planning RIAs owe a fiduciary duty to clients to prepare for disasters and other contingencies. If an RIA does not have a disaster recovery plan, clients financial well-being may be jeopardized. RIAs should also engage in succession planning, ensuring a smooth transaction if an owner or principal leaves.
The former head of the International Monetary Fund, Dominique Strauss-Kahn, who stepped down in the midst of allegations of the rape of a New York chambermaid in 2011, is back in the news. This time it's in connection with a prostitution ring in his native France.
Strauss-Kahn is being held for questioning by French police in northern France, according to the BBC, in connection with an organized prostitution ring in which corporate funds were used to pay for sex. The case is known as the "Carlton affair" after the name of the Lille hotel in which clients were alleged to have been supplied with prostitutes.
While the charges were dropped in the New York case, several of the women involved in this case have admitted having sex with Strauss-Kahn. In addition, three of the eight male suspects are alleged to be connected with him. Strauss-Kahn has insisted that he did not know the women were prostitutes.
Paris-based Christian Fraser of the BBC has said that although there is no law against meeting with prostitutes, providing them to others and the misuse of corporate funds to pay for their services are both illegal activities.
Strauss-Kahn is alleged to have been a participant in sex parties in Washington and in Paris at the end of 2010 and beginning of 2011. One of the parties was allegedly organized by two of the suspects, Fabrice Paszkowski and David Roquet, and is thought to have occurred in the U.S. shortly before he was detained on the New York charge.
Prior to the eruption of the New York case last May, Strauss-Kahn was being considered as a possible Socialist candidate for this year's French presidential election in April.