Con artists excel at exploiting your financial ‘Achilles’ heel’
Bernie Madoff’s fraud victims included Steven Spielberg, a $16 billion fund of funds (Fairfield Greenwich Group) and the largest bank in Europe (Banco Santander). Madoff also fleeced corporate moguls, politicians, attorneys, accountants, securities dealers, insurance companies, universities, foundations, country clubs and as many as 8,000 ordinary folks just like you.
Registered advisers must disclose referral fees to clients
If you engage third-party marketers to solicit your separately-managed account services along with interests in your funds, you should know that, as soon as you register as an investment adviser with the SEC pursuant to the recently-passed Dodd-Frank Act, the SEC’s Cash Solicitation Rule will apply to you and, among other things, require you to disclose to the investors referred to you by your third-party marketers exactly what you are paying those marketers for their referrals.