‘Triumphs’ of the Regulators
The magnificent and multiple failures of financial regulators over the past few years have been rather alarming.
Independent BDs Back SIPC Over Stanford Suit
Fallout from the Allen Stanford case is still growing. In the latest clash over whether shareholders should be protected from losses á la Bernard Madoff, the National Association of Independent Broker-Dealers has sent a letter to the SEC, that says the SIPC should not have to cover those losses.
Books and Records Rule
Thorough and complete books and records enable RIAs to demonstrate that they have fulfilled their fiduciary obligations to clients and complied with applicable rules and regulations.
Conducting Due Diligence of Sub-Advisors and Third-Party Advisors
Engaging in due-diligence of sub-advisors isnt just a recommended best practice it is part of the fiduciary obligation to a client. An RIA should be extremely reluctant to enter a relationship with a sub-advisor who claims the firms strategy is proprietary.
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.
Code of Ethics Rule
The Code of Ethics Rule, found in Rule 204A-1, uses severe consequences for violation to help ensure investment advisors will do the right thing.
MF Global Bankruptcy Spooks Investors; First U.S. Casualty of Europe’s Debt Crisis
MF Global Holdings Ltd., the securities firm run by former New Jersey Governor and Goldman Sachs head Jon Corzine, is seeking bankruptcy protection in what is seen as the first major U.S. casualty of Europe's debt crisis.
Latest ‘Mini-Madoff’ Arrested in Spain, Accused of $300 Million Fraud
In a case reminiscent of the Bernie Madoff debacle, Spanish police arrested a foreign-exchange operator suspected of running a $300 million Ponzi-type fraud.
GOP Lawmakers Probe SEC on Top Attorney's Ties to Madoff
Republican lawmakers on the House Financial Services Committee want the SEC to answer a bevy of questions regarding David Becker, the SEC’s general counsel who’s alleged to have earned more than $1.5 million from a Madoff account held in his mother’s estate.
Libya Turned Down Madoff, Stanford Proposals: Wikileaks
A leaked cable via Wikileaks reveals, according to a Wednesday MSNBC report, that the regime of Libyan leader Muammar Ghaddafi was approached for the purpose of soliciting investments by both Bernard Madoff and Allen Stanford.