Best Execution

Donohue: Advisers Should Reevaluate Best Ex Policies in Light of Market Developments

Do your firms best execution policies and procedures take into account market developments such as the increased availability of commission-sharing arrangements, as permitted in the SECs 2006 soft dollar interpretive release? Do they address the use of “dark pools?”If not, its time to consider whether they should.That was the message delivered by Division of Investment […]

An IM Insight Special Report: The Investment Management Agreement — Part 2: Execution

(This is the next installment in our ongoing walk through the paragraphs of a typical investment management agreement. For the first article, see the March 3, 2008 issue of IM Insight.)Once the advisers services and scope of discretion have been discussed, the typical investment management agreement turns to matters of brokerage and execution. Because brokerage […]

SECs Goodman Urges Advisers to Unbundle, Negotiate Commissions, and Re-think Reliance on Third Parties

Under Section 28(e), advisers that receive soft dollar benefits must make a good faith determination that the brokerage rates they are paying are reasonable in relation to the brokerage and research that they receive. At the recent IAA/IA Week conference, Kevin Goodman, associate regional director of the SECs Denver Regional Office, questioned whether an adviser […]

[You-know-what], Drugs, and Rock and Roll: SEC Slams Fidelity for Seeking Best Entertainment

The SECs March 5 order against Fidelity paints an extraordinarily ugly – and extraordinarily detailed – picture of buy-side traders being seduced with gifts and entertainment from sell-side brokers. Its almost as if the SEC, having lifted the rock on Fidelitys trading practices, wanted the rest of us to have a good long look at all […]

Best Ex Depends on Facts and Circumstances, Say Experts

Best execution can mean different things for different types of clients and different types of trades. That was the theme of a panel discussion on best ex at last months ALI-ABA investment adviser conference. Depending on the type of client, explained Steven Yadegari, general counsel of Cramer Rosenthal McGlynn, a firm may use the same […]

SIFMA Publishes Best Ex Guidance for Fixed Income Managers

Finally, fixed income managers have best execution guidance to call their own. Last week, SIFMAs Asset Management Group released its “Best Execution Guidelines for Fixed-Income Securities.” The 25-page paper was intended to “fill the void in best execution guidance in the context of fixed-income securities,” according to the group. Perhaps the most notable aspect of the […]

Adviser Slapped For Failing to Disclose Brokerage-Related Conflict

If your firm has any arrangement whereby it receives a benefit contingent on hitting a certain target of brokerage with a particular broker-dealer, better double check to make sure that contingency is disclosed on Form ADV Part II. Last week, the SEC settled an enforcement proceeding against Callan Associates, one of the largest pension consultants in […]

Jamison Redux: SEC Brings New Directed Brokerage Case

Last weeks case against Folger Nolan is a healthy reminder that advisers have an ongoing duty to monitor the quality of brokerage executions, even when a client has directed that their trades be sent to their long-standing broker-dealer. According to the SECs August 23 order, the Washington D.C.-based firm routinely sent its advisory clients trades […]

SEC Plans New Wrap Fee Sweep

The SEC examination staff is planning to conduct a new sweep focusing on wrap fee program best execution, suitability, and disclosure issues, as well as basic ICA Rule 3a-4 compliance. SEC associate director Robert Plaze announced the pending sweep while speaking on a panel on wrap fee accounts at the recent IAA/IA Week conference. “At […]

Dual Registrant Sanctioned for Mischaracterizing Advisory Fees

The SEC has sued a dual registrant for allegedly improperly categorizing advisory fees as brokerage fees. According to the SECs January 18 order against Kelmoore Investment Company, the Palo Alto, California firm understated the advisory fees it received from its mutual funds by charging the funds brokerage commissions that were “designed in part” to compensate the […]

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.