Charles Schwab Backpedals and Retracts Client Class-Action Waiver
In a move that has rippled through the securities industry, Charles Schwab has retracted their waiver of rights by clients of class-action lawsuits stipulated in their account agreements. Schwab explained that it would be revising the agreements to reflect this … Read More
SEC Petitioned to Reign in Corporate Campaign Disclosures
A recent petition on the Securities and Exchange Commission (SEC) website has begun to bring light to a move by advocacy groups and others to force disclosures of corporate political campaign funds. Proponents seek the adoption of a rule by … Read More
The Importance of Effectively Monitoring Gifts and Entertainment – Part 4: NASD
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
The Importance of Effectively Monitoring Gifts & Entertainment – Part 3: Pay-To-Play
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
The Importance of Effectively Monitoring Gifts and Entertainment – Part 2: LMRDA
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
The Importance of Effectively Monitoring Gifts and Entertainment – Part 1: ERISA
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
Chief of SEC Enforcement Speaks About the Concerns and Initiatives of Private Fund Advisers
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
