More On Legal & Compliancefrom The Advisor's Professional Library
- Updating Form ADV and Form U4 When it comes to disclosure on Form ADV, RIAs should assume information would be material to investors. When in doubt, RIAs should disclose information rather than arguing later with securities regulators that it was not material.
- 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.
As AdvisorOne reported in April, President Barack Obama has picked Kara Stein and Michael Piwowar to be commissioners at the Securities and Exchange Commission, replacing Elisse Walter and Troy Paredes.
Obama announced late Thursday that Stein, an aide to Sen. Jack Reed, D-R.I., will replace Walter (right), a democrat, and that Piwowar, an economist on the Senate Banking Committee’s staff, will replace Paredes, a Republican.
The nominations now go to the Senate Banking Committee for approval, and then on to the full Senate.
Paredes' term expires on June 5, 2013. Walters' term technically expired on June 5, 2012, but she can stay in office until the end of this year.
Piwowar’s term would expire on June 5, 2018, and Stein’s term would expire on June 5, 2017.
Senate Banking Committee Chairman Tim Johnson, D-S.D., said in a statement that Stein “is a smart, dedicated public servant who has done superb work for Senator Reed on issues before the committee for over a decade. I look forward to supporting Kara’s nomination, and I am confident she will make an outstanding commissioner.”
Piwowar, Johnson said, “has extensive experience working on securities issues. Both of their experiences will serve them well as they work to fulfill the SEC’s mission of protecting investors and ensuring a fair marketplace.” Johnson said he looked forward “to moving both their nominations forward.”
Sen. Mike Crapo, R-Idaho, ranking member of the Senate Banking Committee, said in a statement that Piwowar’s “in-depth expertise of capital markets and background as a chief economist make him exceptionally well-qualified for this position as the SEC moves forward on critical issues.”
He added that as the Republican chief economist and securities expert for the Banking Committee, and previously an economist on the Council of Economic Advisers for two presidents, Piwowar “has thoroughly demonstrated his understanding of these complex issues.”