BD Oversight of Independent IA Activities
9:30 AM – 10:30 AM
Friday, May 18
“Independent” investment advisers are not always independent. IA activities engaged in by registered representatives require broker-dealers to have investment advisory knowledge and call for specific broker-dealer compliance monitoring. While this requirement is not new, (see NASD Notices to Members #94-44 and #96-33), FINRA has become more vigilant and demanding in policing this area in the wake of recent problems. B-Ds who permit reps to be independently licensed as IAs must have procedures in place to meet their oversight responsibilities. What are those responsibilities? What IA knowledge is required? What additional books and records must be maintained by the B-D? These and other questions will be addressed, offering guidance to B-Ds on how to contend with this unique challenge.
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