Broker-dealers

SEC To Adopt Portfolio Manager Disclosure Rules and Directed Brokerage Ban

On August 18, the SEC plans to adopt changes to the way funds disclose information about their portfolio managers and the way they use brokerage to compensate broker-dealers for selling their shares. As proposed, the portfolio manager rulemaking would require that open- and closed-end funds provide new SAI disclosure about:other accounts managed by the funds […]

SEC Issues Short List

If your firm engages in short selling, youll want to familiarize yourself with the new SECs short sale rules, issued last week. The SEC also released the list of securities subject to the one-year pilot, which goes into effect January 3, 2005.

Mutual Fund Advisers Urged to Abandon Soft Dollars

Yet another group has added its voice to the call for soft dollar reform. Last week, the Mutual Fund Directors Forum officially recommended that mutual fund independent directors prohibit their funds advisers from participating in soft dollar arrangements in trades for the funds. The position was announced in the groups “Best Practices and Practical Guidance […]

Brokers Finalizing Business Continuity Plans

Under new NASD rules approved this past spring, all broker-dealers must have business continuity plans (BCPs) in place by the end of the summer. NASD-member clearing firms must have written BCPs in place by August 11. NASD-member introducing firms have until September 10. The NYSE has adopted similar rules.Although advisers are not explicitly required to […]

U-4s and U-5s Cost Morgan Stanley DW $2.2 Million

Imagine having to keep track of 13,000 Form U-4s and U-5s. Giving new meaning to the phrase “the devils in the details,” the NASD announced last week that Morgan Stanley DW agreed to pay $2.2 million to settle charges that it failed to keep more than 1,800 U-4s and U-5s up-to-date. Morgan Stanley also agreed […]

Donaldson Opts-Out

In testimony before the Senate Banking Committee last week, SEC Chairman William Donaldson indicated that he would not support the controversial trade-through opt-out exception. Opt-out, he said, would disadvantage sellers who “stick [their] necks out” and post a limit order outside of the national bid-best offer (NBBO). “I think theres a legitimate argument here for […]

FPA Sues SEC Over Fee-Based Brokerage Rule

After nearly five years of asking nicely, the Financial Planning Association has resorted to more drastic measures. On July 20, the FPA filed a one-page petition asking the U.S. Court of Appeals for the District of Columbia, which has jurisdiction over the SEC, to review the SECs 1999 fee-based brokerage proposal. As part of its […]

Planners Try, Try Again

The Financial Planning Association has made another run at the fee-based brokerage rule. In a June 21 comment letter, the group urged the SEC to withdraw the proposal, and its embedded no-action position, once and for all. The SECs de facto adoption of the rule, said the FPA, constitutes a violation of the letter and […]

Brokers Need to Transfer Customers Cost Basis Information, Says NASD

If a client is changing brokerage firms and the old broker can transfer the clients cost basis information electronically, it must do so if asked. The transfer of cost basis information to the receiving firm should occur as a matter of course as part of the account transfer process, said the NASD in Notice to […]

Liquidnet Gets Comfort on ERISA Issue

What happens if you do a trade on Liquidnet for one of your ERISA clients and the other side of the trade ends up being a party in interest to the plan? According to a recent DOL advisory opinion, as long as you dont ask, dont tell, you and your client wont run afoul of […]

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.