Investment Advisers Act of 1940: Difference between revisions

← Older edit

Investment Advisers Act of 1940 (view source)

Revision as of 11:36, 18 January 2020

1,036 bytes added , 18 January 2020

no edit summary

Amwelladmin

Bureaucrats, Interface administrators, Administrators

82,891

edits

@@ Line 1: / Line 1: @@
-The [[Investment Advisers Act of 1940]] (known as the [[Investment Advisers Act]] and accessible on the [[SEC]]'s Website [http://www.sec.gov/about/laws/iaa40.pdf here]) is a key piece of {{tag|US Legislation}} on the topic of {{tag|Investment Management}}. It should not be confused with the [[Investment Company Act of 1940]] (known colloquially as the '''[[40 Act]]''', which is different, albeit also a key piece of US investment management legislation, also enacted in 1940.
+The [[Investment Advisers Act of 1940]] (known as the {{tag|Investment Advisers Act}} and accessible on the {{tag|SEC}}'s Website [http://www.sec.gov/about/laws/iaa40.pdf here]) is a key piece of {{tag|US Securities Regulation}} on the topic of {{tag|Investment Management}}. It should not be confused with the [[Investment Company Act of 1940]] (known colloquially as the '''[[40 Act]]''', which is different, albeit also a key piece of US investment management legislation, also enacted in 1940.
-Both strike righteous fear into the hearts of US securities attorneys and glum resignation in the spleens of their clients. For US attorneys it is fear, yes - but an exhilharating fear which floods the gizzard with adrenaline, not unlike the immediate fear of bungee jumping. It feels a bit like bungy jumping for clients, too, only from the perspective of the bridge.
+Both strike righteous fear into the hearts of US securities attorneys and glum resignation in the spleens of their clients. Fear, for US attorneys, of an exhilarating sort which floods the gizzard with adrenaline the way it does when you lean forward into a [[bungee jump]]. It feels a bit like bungy jumping for clients, too. Only from the perspective of the bridge.
-Bungee jumping is an apt metaphor, because as soon as the 40 Act is mentioned in forensic conversation, attorneys will jump (for joy) off the client's bridge and gleefully bounce up and down in the revenue stream drifting on below as long as they possibly can.
+[[Bungee jumping]] is an apt {{tag|metaphor}}, because as soon as the {{tag|40 Act}} is mentioned in forensic conversation, attorneys will jump (for joy) off the client’s bridge and gleefully bounce up and down in the revenue stream drifting on below as long as they possibly can.
+{{investment research and the Investment Advisers Act 1940}}
+===Prohibited Transactions - Section 206===
+The Investment Advisers Act makes it unlawful for any investment adviser acting as principal, knowingly to sell any security to or purchase any security from a client without disclosing the capacity in which he is acting and obtaining the client’s consent. Because of the practical difficulties of compliance on a trade-by-trade basis, firms tend to simply refrain from engaging in principal trading with their advisory clients.
+Where advisers trade as a principal and on behalf of their clients with the same [[Broker-dealer]], a technical issue may arise where the [[Broker-dealer]] crosses buy orders and sell orders, something it may do systematically (see [[systematic internalisation]].
+{{sa}}
+*[[riskless principal]]
+*[[systematic internalisation]]
+The key issue is ensuring our crossing engine can be pre-configured not to cross between certain accounts.
+*[[metaphor]]
+{{ref}}