Investment Management

PANDEMIC and Broker-Dealer/Recordkeepers and Advisors... Chances Are, Your Business Continuity Plan Did Not Fully Address This...

By Stephen Wilkes, Kimberly Shaw Elliot and Seth Gaudreau In uncertain times like these where the novel coronavirus or COVID-19 seems to be impacting everything, broker-dealers, investment advisory firms, and the recordkeepers that deal with retirement plan assets are well advised to review their business continuity planning. This should include considering whether their business continuity and ...

SEC Proposed Amendments to Advertising and Solicitation Rules

In early November 2019, the Securities and Exchange Commission ("SEC") released proposed amendments to the advertising rule and solicitation rule under the Investment Advisers Act of 1940 ("Advisers Act"), Rules 206(4)-1 and 206(4)-3, respectively. The proposed amendments attempt to modernize the rules to reflect technological changes, today's investor expectations, and current industry ...

Massachusetts Advances Regulations Imposing Fiduciary Duty on Broker-Dealers

In November 2019, the Commonwealth of Massachusetts issued revised regulations imposing a fiduciary standard upon broker-dealers, although the regulations would not apply to a broker-dealer who is a fiduciary under ERISA, a status currently in limbo since the invalidation by the Court of Appeals for the Fifth Circuit of the Department of Labor’s conflict of interest/fiduciary rule.  In issuing ...

Follow-up on SEC Guidance Regarding Broker-Dealers and Investment Advisors

On June 5th, the SEC issued a four-part package of guidance with respect to the activities of broker-dealers and investment advisors. We prepared an Investment Management Law Alert focusing on one of those components, Regulation Best Interest ("Reg BI"). On July 12th, the SEC guidance was published in the Federal Register. Printing the June 5th release in the Federal Register does not change ...

SEC Issues Final Regulation BI

The SEC, by a 3-1 party line vote, issued in a timely fashion its final regulations with respect to broker-dealer conduct, referred to as Regulation Best Interest ("Regulation BI"). The SEC's related press release can be found by clicking here. Regulation BI is separate and distinct from the fiduciary duty that has been developed under the Advisers Act. It is not intended to establish a private ...