Earlier today, on February 21, 2020, the Massachusetts Securities Division (“MASD”) adopted amendments to its regulations in an effort to hold broker-dealers and agents to a fiduciary standard when dealing with their customers (the “Massachusetts Rule”). While I personally believe that the rule will ultimately be overturned based on federal preemption, in an effort toContinue reading “Massachusetts Fiduciary Rule and Regulation Best Interest”
Category Archives: Uncategorized
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”
Timeline for Delivery of Initial Form CRS
This post discusses the timeline for delivery of an investment adviser’s intial Form CRS and the pros and cons of making the delivery prior to May 30, 2020 or after May 30, 2020.
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 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”
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”
New CFP Board Code and Standards
On October 1, 2019, the CFP Board’s new Code and Standards became effective. For those who haven’t received or read them yet, they are available here. The CFP Board will begin enforcing the new Code and Standards on June 30, 2020. Although there are certainly other changes, the two biggest changes from the prior CodeContinue reading “New CFP Board Code and Standards”
Trusted Contact Persons and Sample Form
Investment advisers and broker dealers and other persons in relationships of trust that must keep confidential a client’s contact information and wishes must be able to go outside of that circle of trust from time to time. However, laws such as Regulation S-P prohibit them from doing so. That is why many investment adviser inContinue reading “Trusted Contact Persons and Sample Form”