Thursday, October 30, 2008

Old news that may be useful

1. Leading Case of Negligence by an Investment Adviser Sets Standard of Care

2. Guided by Greed

3. SFC Suspends Andrew Nicholas Barber for Unsuitable Investment Advice

"The SFAT's Reasons for Determination confirm that express warnings on the face of the investment product documentation do not absolve an investment adviser from their duty to properly explain the risks involved to the client. Although the SFAT accepted that Barber had gone over the documentation with the client, the Code of Conduct for Persons Licensed by or Registered with the SFC requires an investment adviser, when providing services to a client in derivative products, including futures contracts or options, or any leveraged transaction, to assure themselves that the client understands the nature and risks of the products and has sufficient net worth to be able to assume the risks and bear the potential losses of trading in such products."

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