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The weekly news source for investment management legal and compliance professionals

Topic: Broker-dealers

Advisers: Beware of Loans Provided by Friendly Broker-Dealers

October 20, 2017  Three settlements issued on the same day concerning the same alleged violation: accepting loans with favorable terms from broker-dealers in exchange for sending business to those same broker-dealers. Sounds like the SEC is sending a message.
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Associations and Firms Want SEC/DOL Coordination on Standard of Conduct

August 18, 2017  More than 90 comments have been received by the SEC to date in response to agency chairman Jay Clayton’s June 1 call for comments in regard to standards of conduct for investment advisers and broker-dealers. Among the trends emerging from the comments received to date is that the SEC, in coordination with the Department of Labor, create a separate standard of conduct for broker-dealers.
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SEC Seeks Updated Assessment on Need for Uniform Standard of Conduct

June 9, 2017  New SEC chairman Jay Clayton dipped his and the Commission’s toe back into the waters of a possible uniform Fiduciary Rule for advisers and broker-dealers. The end result may be a uniform standard of conduct or something else.
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Another Wrap Fee Adviser Settles with SEC Over Tradeaway Disclosures

March 31, 2017  The SEC isn’t letting up in its scrutiny of dually registered advisers/broker-dealers, particularly those offering wrap fee programs that result in clients paying unexpected fees for transactions that are "traded away" to other brokers. It settled two such cases a few months back – and on March 13 settled a new one.
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Examine Adviser-Broker Relationships for Conflicts of Interest

March 24, 2017  One hand washes the other, or so the saying goes. Advisers and brokers washing each other’s hands, though, would be wise to make sure they are not really engaging in what the SEC might label a conflict of interest.
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Dually Registered Advisers/Broker-Dealers Face Dual Examinations

September 8, 2016  The ability to charge both advisory fees and brokerage commissions may seem like a powerful incentive to become a dually registered adviser/broker-dealer, but there are challenges as well. Among them are that dual registrants have to comply with two standards, two sets of regulations, and – perhaps the most problematic – face two sets of examiners, one from the SEC, the other from FINRA.
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Examiners Scrutinize Adviser Relationships with Broker-Dealers

July 28, 2016  Examiners visiting advisory firms spend increasing amounts of their time these days on cybersecurity and other hot topics du jour. But that’s by no means how they spend all their time. They also look into advisory firm bread-and-butter practices, not least among them relationships with non-affiliated broker-dealers.
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Broker Relationships with Advisers Cannot Get in the Way of Best Execution

July 22, 2016  Friendships between advisers and broker-dealers should only go so far. The majority owner of a broker-dealer learned this lesson the hard way last month after he allowed a financially troubled adviser who was also a longtime friend to set commission rates for his advisory clients, according to the SEC.
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