One result of Quantitative Easing has been search for better investment returns. Rediscovery of inflation by Federal Open Market Committee of Federal Reserve Board of Governors has resulted in increases in federal fund rate, but investors have been bold in placing bets.
The Securities and Exchange Commission SEC proposed a new rule and amendments under the Investment Advisers Act of 1940 that would add significant guardrails to the common practice of registered investment advisers RIAs using third-party service providers.
SEC’s Division of Trading and Markets published bulletin in QA format reiterates standards of conduct for broker-dealers under Regulation Best Interest, for investment advisers under Investment Advisers Act of 1940’s fiduciary standard making account recommendations to investors.
Division of Examinations of the SEC issued a Risk Alert highlighting notable deficiencies identified by EXAMS staff in its review of SEC-registered investment advisers relating to Section 204A Section 204A of the Investment Advisers Act of 1940 and Rule 204A-1 thereunder.
SEC proposed rules require advisers distribute quarterly statements to investors disclosing detailed information regarding fees, expenses and performance. Obtain annual audits of the financial statements of the private funds they manage, in accordance with GAAP.