Logistical Wrinkles Relating to Form CRS

The rules and form implementing Form CRS became effective on September 10, 2019, and investment advisers and broker-dealers are currently in the early stages of preparing and developing internal procedures to comply with the rule and the form. By June 30, 2020, investment advisers registered with the U.S. Securities and Exchange Commission and broker-dealers willContinue reading “Logistical Wrinkles Relating to Form CRS”

The Disclosure Obligation under Regulation Best Interest

While this blog is typically focused on issues pertinent to investment advisers and their associated persons, Regulation Best Interest also extends to “associated persons of a broker dealer”. Many clients that I represent have relationships with broker-dealers and are responsible for supervising persons who are “associated persons of a broker dealer”. I often refer toContinue reading “The Disclosure Obligation under Regulation Best Interest”

Massachusetts Proposes Fiduciary Conduct Standard for Broker-Dealers, Agents, Investment Advisers, and Investment Adviser Representatives

The Massachusetts Securities Division (the “Division”) of the Office of the Secretary of the Commonwealth filed a notice of a proposed regulation that would subject broker-dealers, agents, investment advisers and their investment adviser representatives (collectively, “Registrants”) to a “fiduciary duty”. This fiduciary duty would include both a duty of care and a duty of loyalty.Continue reading “Massachusetts Proposes Fiduciary Conduct Standard for Broker-Dealers, Agents, Investment Advisers, and Investment Adviser Representatives”

WEBINAR: Understanding and Leveraging the Proposed Advertising Rules

On Tuesday, November 19, 2019, my colleague and I hosted a webinar entitled “Understanding and Leveraging the Proposed Advertising Rules.” The presentation discussed the U.S. Securities and Exchange Commission’s November 4, 2019, proposed amendments to the advertising rules and the cash solicitation rules under the Investment Advisers Act of 1940. A copy of the webinarContinue reading “WEBINAR: Understanding and Leveraging the Proposed Advertising Rules”

Webinar: Understanding and Leveraging the Proposed New Advertising Rules

November 19, 2019 12:00pm – 1:00pm EST Register Now On November 4, 2019, the U.S. Securities and Exchange Commission proposed amending rules 206(4)-1 and 206(4)-3 under the Investment Advisers Act of 1940 (the “Advisers Act”). These two rules govern advertisements and cash referrals under the Advisers Act. Join attorneys from Stark & Stark as they discussContinue reading “Webinar: Understanding and Leveraging the Proposed New Advertising Rules”

Initial Thoughts on Proposed Amendment to Rules Governing Investment Adviser Advertisements and Solicitation

On November 4, 2019, the U.S. Securities and Exchange Commission proposed amendments in Release Number IA-5407 to amend rule 206(4)-1) and rule 206(4)-3) under the Investment Advisers Act of 1940 (the “Advisers Act”). These two rules govern advertisements and cash referrals under the Advisers Act. The purpose of this post is to provide my initialContinue reading “Initial Thoughts on Proposed Amendment to Rules Governing Investment Adviser Advertisements and Solicitation”

SEC Considering Proposal to Amend the Advertising Rules

My thoughts on the new Advertising Rule Back in March 2019, Mark Schoeff from InvestmentNews reported that the U.S. Securities and Exchange Commission (“SEC”) was contemplating amending Rule 206(4)-1 under the Investment Advisers Act of 1940 (the “Advertising Rule”) . Before that, Reuters made a similar report in March. Before that, the Investment Adviser AssociationContinue reading “SEC Considering Proposal to Amend the Advertising Rules”

NASAA Adopted Model Cybersecurity Rule

Back in May 2019, NASAA adopted the Investment Adviser Information Security and Privacy Model Rule, which is supposed to serve as a guide or template for state securities regulators to implement their own rules governing cybersecurity. A copy of the adopted rule is available here. As part of the rule-making process, I submitted a commentContinue reading “NASAA Adopted Model Cybersecurity Rule”

State Licensing Requirements for Employees Engaged in Business Development

Section 203A(b) of the Investment Advisers Act of 1940 (the “Advisers Act”) states: (1) No law of any State or political subdivision thereof requiring the registration, licensing, or qualification as an investment adviser or supervised person of an investment adviser shall apply to any person—(A) that is registered under section 80b–3 of this title asContinue reading “State Licensing Requirements for Employees Engaged in Business Development”