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New Textbook Available—-Discount Code!

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We're pleased top announce that Karl is co-author of the first new textbook about the '40 Acts in over 30 years! Investment Management Regulation: An Introduction to Principles and Practices. Available now at cap-press.com. Just click on the "View More" headline to this blurb above to be taken to the publisher's site. As Members you are entitled to a 30% discount at the Carolina Academic Press's site. Please use the discount code, IMR2019. Valid until Sept. 30th, 2019. If you are a professor teaching this material, you may order a free review copy at the site.

Adviser Regulatory & Compliance News

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SEC Publishes Investment Adviser Fiduciary Standard of Conduct Interpretation

July 12, 2019

The SEC published in the Federal Register in its interpretation of the standard of conduct for investment advisers under the Investment Advisers Act of 1940. In its Interpretation, the SEC states that an investment adviser's fiduciary duty under the Advisers Act comprises a duty of care and a duty of loyalty. This fiduciary duty requires an adviser “to adopt the principal's goals, objectives, or ends.” This means the adviser must, at all times, serve the best interest of its client and not subordinate its client's interest to its own. In other words, the investment adviser cannot place its own interests ahead of the interests of its client. This combination of care and loyalty obligations has been characterized as requiring the investment adviser to act in the “best interest” of its client at all times.

Sack and fumble returned for TD!  Lying IA sacked by SEC….

July 11, 2019

Supposed investment adviser to many NFL and other sports stars got sacked by the SEC recently. Daryl M. Davis and his firm Parrish Group, LLC were fined and Davis barred from the industry for multiple violations. While we expect that no one reading this news blurb would engage in the activities leading to the bar and fine, the findings and facts are nonetheless illustrative of the kind of competition and puffery endemic to our industry. In this case, Davis was: (1) an unregistered IA; (2) misrepresented his client list; (3) misrepresented his firm's staffing; and (4) lied about the firm's AUM. The SEC's settlement, which can be accessed by clicking the headline to this blurb, was premised on two findings of fraud under Sections 206(1) and 206(2) of the Advisers Act.

SEC Chairman Speaks on Regulation Best Interest

July 8, 2019

In a speech in Boston, Massachusetts, SEC Chairman Clayton reminded the audience that the SEC recently adopted a package of rules and interpretations designed to enhance the quality and transparency of retail investors’ relationships with broker-dealers and investment advisers. Importantly, he stated that they bring the legal requirements and mandated disclosures for broker-dealers and investment advisers in line with reasonable investor expectations. These actions, in his view, do not attempt to favor one type of service or relationship. Rather, he stated that they are designed to increase investor protection while preserving access for Main Street investors—both in terms of choice and cost—to a variety of investment services and products.

Member Discount!  New Textbook Available:  Investment Management Regulation

July 1, 2019

We're pleased top announce that Karl is co-author of the first new textbook about the '40 Acts in over 30 years! Investment Management Regulation: An Introduction to Principles and Practices. Available now at cap-press.com Just click on the headline to this blurb above to be taken to the publisher's site. As Members you are entitled to a 30% discount at the Carolina Academic Press's site. Please use the discount code, IMR2019. Valid until Sept. 30th, 2019. If you are a professor teaching this material, you may order a free review copy at the site.

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