Under section 205 of the Investment Advisers Act of 1940, an investment advisor registered with the U.S. Securities and Exchange Commission (“SEC”) “may not enter into, renew or renew an investment advisory contract or in any way, enter into, renew or renew an investment advisory contract… Unless the investment advisory contract meets certain requirements set out in section 205, section 205(d) of the Investment Advisers Act, defines an investment advisory contract as “any contract or agreement by which a person undertakes to act or manage an investment or trading account of another person…” The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”), passed on 21 The United States Securities and Exchange Commission (“SEC”) has the power under the Investment Advisers Act of 1940 to prohibit or impose conditions on the use of mandatory arbitration clauses prior to litigation. The U.S. The Securities and Exchange Commission (“SEC”) regularly conducts audits of investment consulting firms. During the audit process, the SEC requests certain information or documents that the SEC`s auditors will verify as part of the audit process. As part of the audit process, investment advisors can expect their firm`s investment advisory contracts to be reviewed. Investment advisors may face similar regulatory failures or violations if the investment advisor`s advisory contracts do not comply with applicable SEC or state rules. In addition, a properly developed investment advisory contract or contract may help to limit the professional liability of an investment advisor. To help your investment advisor better understand the contracts of investment advisory clients, RIA Compliance Consultants is hosting a webinar focused on “The Key Elements to Include in an Investment Advisory Contract – Presented by Bryan Hill Law”. RIA Compliance Consultant is not a law firm.
This webinar addresses issues related to client advisory contracts, including, but not limited to: Although the Investment Advisers Act 1940 does not explicitly require a copy of investment advisory contracts, Section 205 of the Investment Advisers Act requires that all advisory contracts contain certain provisions and prohibit investment advisory contracts from including other provisions. Most government securities rules require written agreements between the investment advisor and each client. Whether a written contract is required by the investment advisor`s primary supervisory authority, the use of a written agreement with each client is generally considered good practice and in the best interest of both the investment advisor and the investment advisor. A properly developed investment advisory contract can help limit an investment advisor`s professional liability. During an investment advisor audit, the U.S. Securities and Exchange Commission (“SEC”) or the National Securities and Markets Authority will likely audit an investment advisor`s written contracts, and below are some of the most common defaults an investment advisor may encounter: please fill out this form, we will try to respond as quickly as possible. Please copy this embed script and insert it in the place you want to embed….