Les Abromovitz, Columnist

These are great advertising pointers. Additionally, many investment advisers make the advertising mistake of making exaggerated claims. A good rule of thumb for a compliance review of an advertising piece is that if an assertion or claim about the investment adviser can’t be proven through some type of objective means, then it shouldn’t be included in the piece.

Compliance GPS: It may be a mistake to project too successful an image, especially in a post-Bernie Madoff world

Les Abromovitz: For compliance purposes, image must be grounded in reality. Advisers should not attempt to project the image that they are miracle workers who will be successful in every market.

Bernie Madoff

Les Abromovitz

The past two years have been some of the most momentous in the relatively short history of the RIA profession. Legislators and regulators have been gradually embracing the fiduciary standard, though whether it will fully apply to everyone calling themselves advisors remains to be seen.

The Department of Labor’s crusade to lower costs and increase transparency in retirement plans means a spate of new regulations affecting advisors and brokers in that market. Dodd-Frank Financial Reform, meanwhile, continues to unroll across the profession, with the biggest change being a shift to state oversight of RIAs with less than $100 million AUM. In this section, you’ll find continually updated RIABiz.com coverage on all these topics.

RIA Compliance

Hint: photos of you on a yacht may not be what your clients are looking for right now

Compliance GPS: It may be a mistake to project too successful an image, especially in a post-Bernie Madoff world

Bryan Hill

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