More On Legal & Compliancefrom The Advisor's Professional Library
- The Custody Rule and its Ramifications When an RIA takes custody of a clients funds or securities, risk to that individual increases dramatically. Rule 206(4)-2 under the Investment Advisers Act (better known as the Custody Rule), was passed to protect clients from unscrupulous investors.
- Agency and Principal Transactions In passing Section 206(3) of the Investment Advisers Act, Congress recognized that principal and agency transactions can be harmful to clients. Such transactions create the opportunity for RIAs to engage in self-dealing.
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.”