Best Execution

LIBOR: Checklist Issued May Ease Transition to New Benchmark Rate

The financial industry’s shift away from the key benchmark rate it has historically used is picking up steam, with most of those affected likely to be using another benchmark by the end of next year. That said, the switch from the older rate, the London Interbank Offered Rate (LIBOR) is likely to be somewhat complex. A key government committee recently issued a checklist to help asset management firms and others manage their move.

Assess LIBOR Exposure in Preparation for Shift

Advisory firms need to prepare for the financial communitys coming switch from the London Interbank Offered Rate (LIBOR) as the most commonly used interest rate benchmarks. Those who think of the benchmark situation as a problem affecting primarily banks are likely to be in for a rude shock, as many portfolios and financial contracts may be affected by it.

OCIE Reveals Most Common Best Execution Deficiencies Found by Examiners

Wouldnt it be great to know what examiners expect to find - and, as a result, will be looking for - when they visit? In the area of best execution, at least, that is no longer a mystery. The SECs Office of Compliance Inspections and Examinations on July 11 released a risk alert containing "the most common deficiencies associated with advisers best execution obligations identified by OCIE staff."

Issues that Create Best Execution Problems and How to Resolve Them

Advisers have the responsibility of always seeking best execution for their clients. Doing so, however, is not as easy as it may initially sound - and advisers may find themselves in situations where they unexpectedly face issues that, in addition to being problems in and of themselves, create best execution problems. Advisers should be aware of when these may arise and how to handle them.

PF Managers of Buyer and Seller Real Estate Funds Must Do Right by Both

Private fund advisers specializing in real estate transactions need to beware. Steer clear of conflicts of interest when selling property from one client fund to another. Disclosure must be your watchword and favoritism cannot be shown to either fund, regardless of your firms percentage of ownership in each.

Follow These Best Practices on the Road to Best Execution

The SEC does not require that advisers achieve best execution when managing transactions for their clients. What it requires is that advisers seek best execution, which it sees as part of their fiduciary duty. That clarification in no way lessens the burden on advisers. If the agency finds an adviser is not seeking best execution, you can expect its enforcement foot to come down hard.

Wrap Fee Programs: Best Execution No Defense if Trade Aways Not Disclosed

Best execution, best execution, best execution. Those two words are pounded into the minds of advisers and their trading desks so that clients receive the best deals possible. But they apparently made little difference to the SEC, which settled with a wrap fee program subadviser for failing to adequately disclose the frequency of trades it sent to non-affiliated brokers - even though the subadviser said those trades resulted in lower execution costs.

Examiners Scrutinize Adviser Relationships with Broker-Dealers

Examiners visiting advisory firms spend increasing amounts of their time these days on cybersecurity and other hot topics du jour. But thats 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.

Broker Relationships with Advisers Cannot Get in the Way of Best Execution

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.

DOL Fiduciary Rule: Retirement Fund Managers Should Pay Attention

The new fiduciary rule unveiled by the Department of Labor on April 6 is not just for broker-dealers. Investment advisers and any other financial entities providing retirement investment recommendations are affected. As with most government regulations, more work is likely to be required.

Audio Interviews

How to Read an SEC Enforcement Action

Stern Tannenbaum law firm partner Aegis Frumento on how to get the most from reading an SEC administrative order or court complaint.

Most Important Supreme Court Decisions for Advisers and Funds

Find out the high court decisions from recent years that are likely to affect how advisers and investment companies work from Debevoise partner Robert Kaplan. 

Top 10 Cybersecurity Steps to Take Now

Sutherland law firm partner Brian Rubin shares the most urgent cybersecurity steps for investment advisers.

Top Marketing Problems … and Solutions

Get solutions for the top marketing challenges that advisers face from ACA Compliance Group managing director Kimberly Daly

Watch Out for 5 Cybersecurity Myths

ACA Aponix Director Pascal Busnel on the most common cybersecurity myths that may cause firms to spend resources where they may not be needed.

The Hidden Costs of Non-Compliance

Proskauer law firm partner and former SEC Division of Investment Management deputy director Robert Plaze on why the costs of non-compliance go way beyond an SEC penalty.

CCO Liability: How to Protect Yourself

Find out from Blue Edge Capital CCO Margaret Fretz what chief compliance officers may be liable for and best practices to make sure you are protected.

Ethics or Compliance: Making the Choice

Find out the difference an ethics, rather than a compliance, perspective makes at an advisory firm from former Ethics and Compliance Officer Association COO Timothy Mazur.