As of today, in the retirement and savings plan matters, money managers are not required to register as fiduciaries. The Department of Labor ("DOL") is about to clarify the situation by wiping out the difference that exists between financial advisors and broker dealers in regard to their responsibilities in retirement advices.
The terms of the investment banking engagement letter are critical to the protection of the issuer in any deal. Often overlooked, however, is that the investment banker’s fee is often protected or lost by those same terms – particularly in small deals for micro-cap or under capitalized companies.
Last year the Federal Court of New York was stormed by investors alleging that exchanges, banks, and broker dealers created an unfair marketplace through high frequency trading ("HFT").
The Court of Appeals in the 2nd Circuit held that a FINRA member firm and its customer may agree to settle disputes in court and not in FINRA arbitration.