Posts tagged IA.
Last Friday, FINRA proposed pay-to-play prohibitions that parallel and implement similar Investment Adviser Act provisions in Rule 206(4)-5. That IA Rule prohibits investment advisers from paying third-parties to solicit government-entity advisory clients unless the solicitor is a "regulated person" subject to similar pay-to-play provisions. The SEC adopted the IA Rule in July 2010, but this particular requirement wasn't triggered until the Commission's adoption of the Municipal Advisor Rule, which became effective this past July 1. FINRA's proposed Rules are modeled ...
Posted in: FINRA
Ruling in a case of first impression, the Sixth Circuit rejected an implied cause of action under Section 36(a) of the Investment Company Act of 1940, 15 U.S.C. § 80a-1 et seq. Although the Circuits remain split, recent decisions (after 2001) agree on the point. Two pension funds sued an exchange-traded fund (ETF), its investment advisor (IA) and its trust-company-affiliate (BTC), claiming BTC's Lending Agent fee "' 35% of all net revenue on the ETF's securities-lending activity - was excessive. The Court affirmed dismissal of the express Section 36(b) claim for breach of fiduciary ...
Posted in: SEC
Tags: BTC, ETF, exchange-traded fund, IA, investment advisor, SEC, Sixth Circuit, the Investment Company Act of 1940, trust-company-affiliate