Compliance and Consulting

An Update to 408(b)(2) and Its Impact on Investment Advisors

The Department of Labor (DOL) recently put forth a proposed amendment to its rule, Reasonable Contract or Arrangement Under Section 408(b)(2) – Fee Disclosure, which initially became effective July 1, 2012.

Under the original rule, covered service providers were required to provide certain disclosures, some of which are described…more

Investment Fees: Are You Charging the Right Amount?

In today’s marketplace, investment management fees vary widely from one product to another, as well as from one client to another. Fee calculations range from simple to quite complex.

In their most basic form, management fees are a flat percentage of assets under management. However, investment advisors and clients…more

Are You in Compliance with SEC Custody Rules?

After the barrage of investment frauds several years ago, the SEC came under intense pressure to update its rules protecting investors. The SEC responded by issuing what is commonly referred to as the “custody rules.”

The custody rules indicate that if an investment manager has custody of client funds, they…more

What Investment Advisors Need to Know About 408(b)(2)

In December 2007, a proposed rule was published concerning the disclosures that must be furnished to plan fiduciaries in order for plan services to be considered “reasonable.” Following a public comment period, public hearing, and interim final rule published in July 2010, the final rule became effective July 1. This…more

An Overview of Securities Lending

What Is Securities Lending?
Securities lending is the temporary transfer of securities by one party (the lender, also called the “beneficial owner”) to another (the borrower).

The borrower is obligated to return the securities to the lender, either on demand, or at the end of an agreed upon term.

For…more