The fastest way to secure your business from regulatory risk. The leader in RIA, Broker Dealer Compliance, Enforcement Defense, and Investor Protection.
MAH Advising Represents Professionals and Firms in the Securities Industry
MAH Advising represents many of the nation’s most prominent brokers. Our firm specializes in investment adviser regulation, broker/dealer regulation, securities regulation, litigation and arbitration. Several of our consultants have years of experience with regulatory law and regulators, which allowed them to develop skills and specialized knowledge. In addition, we served as an adviser to private funds and as a compliance officer for national broker-dealers. We have a broad understanding of both the regulatory and the regulated perspectives of the financial services industry. The insight that only comes with experience allows us to give our clients valuable advice.
Regulatory and Compliance Issues for Investment Advisers
MAH Advising advises new as well as seasoned investment advisers, including those who are required by law to be registered with the SEC or Securities and Exchange Commission. Regulations and laws in the industry often change, so businesses must keep abreast of the latest changes. Assisting clients in every aspect of their business, from choosing an appropriate business structure to drafting governing documents, or defending against enforcement actions, our firm assists clients with all aspects of structuring, drafting, and legal matters. Investment advisers are regulated by the SEC under the Investment Adviser Act of 1940. One of the requirements is that firms or individuals, defined by the Act are required to register with the SEC unless barred from doing so by the Act. Under their state securities laws, most states require similar requirements, and in addition, registered investment advisers are legally required to provide advice. Additionally, both the SEC and individual advisers working for advisory firms are subject to SEC and state regulations. The requirement often includes a prohibition against both intentional fraud and negligent conduct, which are both considered types of fraud. Regulating some activities further is possible by adopting regulations that must be strictly obeyed.
Financial Services and Securities Litigation and Arbitration
MAH Advising as a RIA Compliance firm represents financial services industry participants in defending and prosecuting legal actions. The main types of disputes that have arisen from RIAs or securities firms consist of arbitration proceedings involving RIA employees, noncompetition and raiding cases, breach of employment contracts, promissory note cases, and breach of purchase and sales agreements, among many others. There are usually laws and regulations which apply to a particular case based on its type. Under FINRA standards, customer recommendations regarding the sale or purchase of an unsuitable security are prohibited, when the investment objectives, customer’s age, financial picture, and experience make this recommendation unreasonable. The frequency or amount of transactions among certain securities are often regarded as excessive and, therefore, unsuitable for a particular customer. Besides unauthorized trading, churning, and self-dealing, other common customer disputes are regarding allegations of failure to perform fiduciary duties.
Regulatory firms frequently face some legal actions stemming from breaches of contracts between affected employees or advisors. Often in these matters, interpretation is required of complicated contracts or laws pertaining to the partnership arrangement between an employer and employee or adviser, including non-competition laws, protocols of the private sector, common law rules, and standards for client choice.
Disclaimer: We are consultants, not lawyers, this is not legal advice. We work with the top law firms when the practice of law is required.