3/8/2010
Before this week is out, the SEC's revised custody rule takes effect (IA Watch, Feb. 15, 2010), even as some suggest the agency should delay the implementation because of numerous unanswered industry questions that leave firms confused as to whether they're subject to its surprise exam or control re ...
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3/8/2010
Satisfying SEC examiners when it comes to best execution could be as simple as having a process that seeks best execution and routinely following it because "that's what we look for" during exams, said Kevin Goodman, associate regional director of the SEC's Denver Regional Office.Also conduct "perio ...
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3/8/2010
How's this for a sign that everything isn't hunky-dory: when SEC examiners showed up at an RIA, the CCO announced the firm had just deregistered?Last week the SEC formally charged Gary Headding, former owner of the now-defunct Envision Direct RIA in San Clemente, Calif., with stealing at least $274, ...
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3/8/2010
Here's a way to detect if a trader's playing the old shell game. Check out the value of a security after it's been sold. Say the trader bought it at $10, sold it at $10.01 and shortly thereafter it fell to $9.80 - and you spot similar trades by the same person over time.This could speak to the trade ...
3/8/2010
Most of your peers spend the bulk of their time monitoring for exceptions to compliance, believe their program makes their firms more competitive and their budgets average 6% of their firm's operating costs, according to a new survey that IA Watch co-sponsored.Tony Turner, owner of Financial Trackin ...
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3/8/2010
If your firm gets compensation from an affiliated custodian holding client ERISA and IRA accounts, pay attention to a new proposal from the Labor Department. It closely mirrors a rule issued as one of the last acts of the Bush Administration. The Obama Administration never implemented the provisions ...
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3/8/2010
Among the hot topics FINRA will be scrutinizing this year during exams of firms include short sales and Reg SHO compliance, the supervision of branch office staff, business continuity planning in light of the H1N1 threat, anti-money laundering efforts, privacy and protection of client information an ...
3/1/2010
In its latest action to discourage abusive short selling that some blame for a stumbling market, SEC commissioners voted 3-2 last week to give the industry six months to prepare for a restriction that would curtail short selling for at least 24 hours in any equity that falls in price 10% over the pr ...
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3/1/2010
How to extend a fiduciary duty to certain broker-dealers has long tangled lawmakers and policymakers and this week members of the SEC's Investor Advisory Committee showed again how vexing the issue can be.If policymakers hope the committee will settle on a solution, much work remains. The topic at t ...
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3/1/2010
As RIA Anchor Capital Advisors in Boston ($5B in AUM) met its fiduciary duty to its investors, the CPA it had entrusted to run its 401(K) plan was making off with hundreds of thousands in former employees' retirement savings.Last week the SEC barredMark Harrington from working for another investment ...
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