Last, but not least, another rule that firms should be aware of is NASD Conduct Rule 3060. This rule prohibits firms from giving any gift or gratuity in excess of $100 per year to any person where such payment is … Read More
Another rule that firms must be mindful of in monitoring is the SEC’s, Pay-to-Play Rule. The Rule is designed to prevent investment advisers (IAs) from obtaining governmental business, through direct or indirect campaign contributions made by certain high-level employees to … Read More
Advisory firms continue to monitor gifts and entertainment by reviewing all statutory and regulatory requirements, one of which is the reporting requirements of the Labor-Management Reporting and Disclosure Act of 1959 (“LMRDA”). Firms may be subject to the LMRDA as … Read More
Gifts and entertainment can establish goodwill between securities professionals and their clients. However, some gifts and entertainment benefits can be too frequent or so excessive as to give rise to an appearance of improper influence. To prevent improprieties, governmental agencies … Read More
In a recent speech at the Private Equity International Conference in New York, Bruce Karpati, Chief of the Securities and Exchange Commission’s (“SEC”) Enforcement Division’s Asset Management Unit, addressed private equity enforcement concerns. While the SEC has not traditionally brought … Read More
On December 21, 2012, the Securities and Exchange Commission (“SEC”) unanimously approved a Draft Final Rule requiring broker-dealers to conduct searches for holders of securities with whom they have lost contact. A similar rule already applies to recordkeeping transfer agents, … Read More
The Financial Industry Regulatory Authority Inc. (“FINRA”) Board of Governors voted to propose a rule during the December board meeting that would require brokers to disclose their recruitment incentives to customers. The suggestion is obviously getting a sharp reaction from … Read More
