On February 15, 2012, the SEC released a final rule implementing changes to the definition of “Qualified Client” under the Investment Advisers Act of 1940. The primary changes are: 1) The qualification for assets under management with the adviser has been increased from $750,000 to $1,000,000. 2) The qualification for net worth has been increased [...]
Ahead of the Curve
Final Rule on Qualified Client Definition
February 16th, 2012First-Ever Sports Betting Hedge Fund Craps Out
February 14th, 2012According to an article in Compliance Week, a London-based investment company called Centaur that had launched “Galileo,” the first-ever Managed Sports Fund., has advised investors that it was going into liquidation and there was no money left. Galileo investors lost approximately $2.5 million. Galileo sought to generate returns through sports betting, which was similar to an [...]
Webinar: Final Service Provider Fee Disclosure Rules
February 13th, 2012On February 2, 2012, the Department of Labor (DOL) released the final service provider fee disclosure rules—also known as the 408(b)(2) rules—which will become effective on July 1, 2012. The following webinar provided by AllianceBernstein provides an overview of these disclosure rules. I encourage you to listen to it at your convenience, as I believe it provides relevant, valuable information [...]
Top 10 Trends in Wealth Management
February 7th, 2012Advisor One reported on a Aite Group study that projects the radical industry changes that began in 2008 will continue into 2012. The report warns that many of these trends will afffect business models, profitability pressures, investor requirements and more. The Top 10 Trends the report cites are: 1. Market Reshuffle, Continued - Breakway brokers, acquistions by [...]
The Battle Over Brokers’ Duty to Their Clients Reaches a Standstill
February 7th, 2012The Wall Street Journal is reporting that the battle over a broker’s fiduciary duty is moving in a new direction. According to the article, the push to hold brokers to the same standard of care as investment advisers seemed to be close to success a year ago but the SEC never voted to change the [...]
The Battle Over Brokers’ Duty to Their Clients Reaches a Standstill
February 7th, 2012The Wall Street Journal is reporting that the battle over a broker’s fiduciary duty is moving in a new direction. According to the article, the push to hold brokers to the same standard of care as investment advisers seemed to be close to success a year ago but the SEC never voted to change the [...]
FINRA targeting ‘yield chasing’
February 7th, 2012In a market defined by low interest rates, investors are searching for higher returns. In a 16-page letter posted on its website late Tuesday, FINRA outlined its regulatory and examination priorities for 2012. According to Investment News today, at the top of the list: conduct and products meant to beat the market that instead are unsuitable for [...]
Focus Financial Gains Access to ‘Huge Money’ – $320 Million in Credit
February 7th, 2012RIA Biz is reporting that Focus Financial announced that it had closed a $220 million revolving credit facility. The facility can be increased by $100 million through an accordian feature making $320 million available. The credit facility is supported by Bank of America, BMO Capaital Markets, JPMorgan, SunTrust Robinson Humphrey, Comerica and UBS, among others. Focus’ two venture capitalist backers, [...]
The Battle Over Brokers’ Duty to Their Clients Reaches a Standstill
February 7th, 2012The Wall Street Journal is reporting that the battle over a broker’s fiduciary duty is moving in a new direction. According to the article, the push to hold brokers to the same standard of care as investment advisers seemed to be close to success a year ago but the SEC never voted to change the [...]
Senate Approves Insider-Trading Bill
February 3rd, 2012After pressure from mainstream media and recent statements from President Obama in his State of the Union address, the Senate approved legislation to curtain insider trading by lawmakers and officials in the executive branch. The legislation was approved 96-3. The legislation would prohibit lawmakers from buying and selling securities based on their knowledge of nonpublic [...]
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