Brokers or Investment Advisers? The US Public Perception

2019 ◽  
Vol 75 (3) ◽  
pp. 125-131
Author(s):  
Patrick A. Lach ◽  
Leisa Reinecke Flynn ◽  
G. Wayne Kelly
Keyword(s):  
Public Perception ◽  
The Us ◽  
Investment Advisers

OCIE issues risk alert on the most frequently identified advisory fee and expense compliance issues

2018 ◽  
Vol 19 (4) ◽  
pp. 1-3
Author(s):  
Robert Van Grover
Keyword(s):  
Design Methodology ◽  
Best Practice ◽  
Investment Management ◽  
Content Type ◽  
Informed Decisions ◽  
Policies And Procedures ◽  
The Us ◽  
Investment Advisers ◽  
Practical Implications

Purpose To summarize and interpret a Risk Alert issued on April 12, 2018 by the US SEC’s Office of Compliance Inspections and Examinations (OCIE) on the most frequent advisory fee and expense compliance issues identified in recent examinations of investment advisers. Design/methodology/approach Summarizes deficiencies identified by the OCIE staff pertaining to advisory fees and expenses in the following categories: fee billing based on incorrect account valuations, billing fees in advance or with improper frequency, applying incorrect fee rates, omitting rebates and applying discounts incorrectly, disclosure issues involving advisory fees, and adviser expense misallocations. Findings In the Risk Alert, OCIE staff emphasized the importance of disclosures regarding advisory fees and expenses to the ability of clients to make informed decisions, including whether or not to engage or retain an adviser. Practical implications In light of the issues identified in the Risk Alert, advisers should assess the accuracy of disclosures and adequacy of policies and procedures regarding advisory fee billing and expenses. As a matter of best practice, advisers should implement periodic forensic reviews of billing practices to identify and correct issues relating to fee billing and expenses. Originality/value Expert guidance from experienced investment management lawyer.

Food vs. fuel — A turning point for bioethanol?

2008 ◽  
Vol 56 (4) ◽  
pp. 429-433 ◽  
Author(s):  
K. Harlander
Keyword(s):  
Agricultural Production ◽  
Public Perception ◽  
Turning Point ◽  
The United States ◽  
The Public ◽  
The Us ◽  
Additional Demand ◽  
Oil Crisis ◽  
Emotional Resistance ◽  
The Eu

Bioethanol is made from sugar- or starch-containing plants that are also used in food production. In the public perception this has led to an emotional resistance against biofuels, which in real terms is not substantiated. Generally biofuels are a political product. Triggered by the oil crisis in the 1970s, fuel ethanol programmes were first launched in Brazil and in the United States. Concerns regarding energy security and sustainability, together with the option of new markets for surplus agricultural production, have led to similar measures in the EU and other countries in recent years. Accordingly, the industry invested heavily in new bioethanol plants — especially in the US — and created an additional demand for maize and wheat, with some record-breaking prices noted in late 2007. A look back into statistics shows a drastic decline in real prices for decades, which have now simply returned to the level of 30 years ago. The grain used for bioethanol is currently only 1.6% in the EU and is therefore unlikely to be the real driver of price development. The European Commission concludes in its review of agricultural markets that Europe can do both: nutrition and biofuels.

Better ‘Best Execution’

2018 ◽  
pp. 165-196
Author(s):  
Christopher Nagy ◽  
Tyler Gellasch
Keyword(s):  
Securities And Exchange Commission ◽  
Client Expectations ◽  
The Us ◽  
Best Execution ◽  
Public Disclosures ◽  
Investment Advisers ◽  
The Impact ◽  
Disclosure Obligations

This chapter reviews best execution and new disclosure obligations in relation to investment advisers as well as brokers; it also provides an overview of the strategies they use to meet their rapidly changing obligations. Investment advisers and brokers are confronted with increasingly stringent regulatory and client expectations to fulfil their duty of best execution. Regulators in Europe have become active in developing formal best execution obligations, but the US Securities and Exchange Commission (SEC) is lagging behind in providing a clear framework for best execution. This chapter first outlines the analogous best execution obligation for broker-dealers and explores the contours of the SEC’s expectations for investment advisers. It then assesses the impact of new European best execution obligations and the role of public disclosures in aiding the fulfilment of best execution duties. It concludes by examining various strategies used by investment advisers to fulfil their evolving duties.

SEC adopts rules and interpretive guidance designed to enhance and clarify the obligations of financial professionals

2019 ◽  
Vol 20 (4) ◽  
pp. 35-44
Author(s):  
Michael R. Rosella ◽  
Vadim Avdeychik ◽  
Justin R. Capozzi
Keyword(s):  
Historical Context ◽  
Legal Counsel ◽  
Legal Analysis ◽  
Best Interest ◽  
Extensive Experience ◽  
Content Type ◽  
The Us ◽  
Investment Advisers ◽  
Definition Of ◽  
Practical Implications

Purpose This article provides an overview of the US Securities and Exchange Commission’s (SEC) recent approval of a package of rulemakings and interpretations designed to enhance the quality and transparency of investors’ relationships with investment advisers and broker-dealers. Design/Methodology/Approach The article provides legal analysis for and historical context of the requirements of the SEC’s adopted rules, Regulation Best Interest and Form CRS in addition to the two separate interpretations under the Investment Advisers Act of 1940, the Standard of Conduct for Investment Advisers; and the Broker-Dealer Exclusion from the Definition of Investment Adviser. Findings The SEC’s adopted regulatory package does not adopt a uniform fiduciary standard for broker-dealers and investment advisers but instead promulgates legal requirements and mandated disclosures in order to conform to the SEC’s perceived expectations for reasonable investors. Practical implications Investment advisers and broker-dealers should consult with their legal counsel in assessing how and to what extent the new regulatory package is applicable to them. Originality/Value This article provides practical guidance from lawyers who have extensive experience with the Investment Company Act, Investment Advisers Act, and the Securities Acts.

SEC targets investment adviser community

2014 ◽  
Vol 15 (1) ◽  
pp. 45-47
Author(s):  
Robert P. Bramnik ◽  
Mauro M. Wolfe
Keyword(s):  
Financial Services ◽  
Design Methodology ◽  
Content Type ◽  
Practical Advice ◽  
Compliance Programs ◽  
The Us ◽  
Investment Advisers

Purpose – To draw attention to the US Securities and Exchange Commission's (SEC) disciplinary focus on the investment adviser community Design/methodology/approach – Describes six recent enforcement cases for disclosure, custody, supervisory, procedural, and other rule violations and compliance failures; explains changes in registered investment adviser (RIA) exemptions following enactment of the Dodd-Frank Act; discusses recent SEC announcements concerning inspections and examinations of RIAs. Findings – The SEC's recent announcements and enforcement actions signal that all advisers (both registered investment advisers and exempt reporting advisers) may want to pay particular attention to their compliance programs and supervisory procedures. Originality/value – Practical advice from experienced financial services lawyers.

A review of the SEC Participating Affiliate No-Action Letters’ relief from Investment Advisers Act of 1940 registration for foreign investment advisers

2017 ◽  
Vol 18 (4) ◽  
pp. 22-28 ◽  
Author(s):  
Wendy E. Cohen ◽  
David Y. Dickstein ◽  
Christian B. Hennion ◽  
Richard D. Marshall ◽  
Allison C. Yacker ◽  
...  
Keyword(s):  
Foreign Investment ◽  
Financial Services ◽  
Design Methodology ◽  
Securities And Exchange Commission ◽  
Content Type ◽  
The Us ◽  
Information Update ◽  
Practical Guidance ◽  
Investment Advisers

Purpose To explain the US Securities and Exchange Commission (the “SEC”) staff’s (the “Staff”) participating affiliate exemption from investment adviser registration for foreign advisers set forth in a line of Staff no-action letters issued between 1992 and 2005 (the “Participating Affiliate Letters”) and to discuss recent guidance issued by the Staff in an information update published in March 2017 (the “Information Update”) with respect to complying with requirements of the Participating Affiliate Letters. Design/methodology/approach Reviews the development of the Staff’s approach regarding the non-registration of foreign advisers that rely on the Participating Affiliate Letters from prior to the issuance of those letters through the Information Update and sets forth recommendations for registered investment advisers and their participating affiliates. Findings While there are arguments that the Information Update goes beyond restating established standards and does not clearly explain whether submission of all listed documentation is required, the Information Update will likely standardize the information submitted to the SEC. Originality/value Practical guidance for advisers relying on the Participating Affiliate Letters from experienced securities and financial services lawyers.

scholarly journals Public perception of the United States’ Affordable Care Act

2019 ◽  
Vol 5 (2) ◽  
pp. 28
Author(s):  
Azizur R. Molla ◽  
Theresa Ann Bacon-Baguley ◽  
Susan DeVuyst-Miller ◽  
William Wonderlin ◽  
Elizabeth Benedetti
Keyword(s):  
Affordable Care Act ◽  
Public Perception ◽  
The United States ◽  
Political Affiliation ◽  
The Us ◽  
Health Physician ◽  
Convenience Sampling ◽  
Personal Sacrifice ◽  
The Impact ◽  
Out Of Pocket Costs

Background/Objective: Implementation of the Affordable Care Act (ACA) in the US has given opportunity to obtain health insurance for thousands who were previously uninsured. Many believe that the ACA is an improvement over previous insurance, while others view it as making health care more costly. The purpose of this study was to survey individuals regarding knowledge and perceptions of the ACA.Methods: Researchers in public health, physician assistant studies, pharmacy and medical education developed a survey to assess the impact of the ACA. The survey included demographic questions and statements which assessed ACA support, and perspectives of the ACA’s impact on pharmaceutical and medical coverage and personal out of pocket costs. A convenience sampling was used to recruit participants at a public venue in an urban setting.Results: Demographics of the 179 surveyed include: median age 31 years; 84% Caucasian; 37% married; 58% completed a minimum of four years of college; and 45% with income exceeding $50,000. 13 (7%) were uninsured before the ACA, and 8 (4%) after. 130 (73%) had prescription coverage before the ACA with 107 (60%) reported no change in coverage, 22 (12%) better coverage, and 21 (12%) less coverage after the ACA. An association for ACA support was found based on political affiliation with more Democrats than Republicans supporting the ACA (p < .001). 71 (71%) who support the ACA, reported insurance did not improved after the ACA.Conclusions: These findings identify that in a sample of upper middle class individuals, a majority support the ACA despite a lack of improvement in their own insurance indicating that personal sacrifice for the general population is occurring.

scholarly journals Ethics and public perception of climate change: Exploring the Christian voices in the US public debate

2009 ◽  
Vol 19 (4) ◽  
pp. 512-521 ◽  
Author(s):  
J. Arjan Wardekker ◽  
Arthur C. Petersen ◽  
Jeroen P. van der Sluijs
Keyword(s):  
Climate Change ◽  
Public Perception ◽  
Public Debate ◽  
The Us

SEC requires hedge funds to prevent insider trading despite unsettled legal definition

2017 ◽  
Vol 18 (1) ◽  
pp. 63-64
Author(s):  
Nicolas Morgan ◽  
Art Zwickel ◽  
Thomas A. Zaccaro ◽  
Jenifer Q. Doan
Keyword(s):  
Supreme Court ◽  
Insider Trading ◽  
Legal Concept ◽  
Content Type ◽  
Legal Definition ◽  
Enforcement Action ◽  
The Us ◽  
Us Supreme Court ◽  
Investment Advisers ◽  
Definition Of

Purpose To explain the import of a recent enforcement action by the US Securities and Exchange Commission (SEC) against an investment adviser for failing to prevent insider trading against the context of an unsettled legal definition of “insider trading” as evidenced by the issue presented in a recent case before the US Supreme Court. Design/methodology/approach Reviews the principal issues raised by the SEC in its enforcement action, legal requirements imposed on investment advisers, and the insider trading issues presented by the US Supreme Court case. Findings Because the legal concept of insider trading has developed through case law and is not defined by statute, it remains uncertain, and therefore the practice of insider trading will be difficult to prevent without restricting activities that could ultimately be determined to be legal. Practical implications In light of the SEC’s high threshold for investment advisers to prevent insider trading and the uncertain legal definition of that concept, investment advisers should review their insider trading policies and err on the side of caution. Originality/value Practical guidance from an experienced former SEC counsel and SEC practitioners offers new insights into the steps investment advisers should take in response to SEC enforcement activities and nebulous legal definitions.

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