More On Legal & Compliancefrom The Advisor's Professional Library
- Client Communication and Miscommunication RIA policies and procedures must specify what type of communications should be retained. The safest course of action is for RIAs to retain all communicationsto clients, from clients, and about client accounts. To comply with fiduciary obligations, communications must be thorough and not mislead.
- RIAs and Customer Identification Just as RIAs owe a duty to diligently protect their clients privacy and guard against theft, firms also play a vital role in customer identification. Although RIAs are not subject to an anti-money laundering rule, securities regulators expect advisors to address these issues in their policies and procedures.
The House Financial Services Subcommittee on Oversight and Investigations, chaired by Rep. Randy Neugebauer, R-Texas, said Wednesday that it expects to report the results of its year-long investigation into the collapse of MF Global in the next few weeks.
“Our investigation is essentially an autopsy of how MF Global came to its ultimate demise and what policy changes need to be made to prevent similar customer losses in the future,” Neugebauer said in a statement. “We must restore confidence and integrity to the futures markets and send a strong signal to customers that their accounts are safe and secure.”
The subcommittee says its investigation has involved three hearings, more than 50 interviews and the review of more than 243,000 documents obtained from MF Global, its former employees, federal regulators and other sources.
“MF Global customers deserve to know how and why their funds went missing; market participants deserve to know whether regulatory lapses have been identified and corrected; and taxpayers deserve to know that policymakers and regulators have been held accountable,” Neugebauer said.
In late August, prosecutors dropped their criminal investigation into the former Goldman Sachs head/governor of New Jersey/disgraced MF Global CEO, Jon Corzine. The New York Times also reported at the time that Corzine might start a hedge fund.