Table an adviser's or representative's pay against the opened conduct rules
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Extract who pays whom, for what service, and any written disclosure of capacity the file contains, with page cites. Do not say the pay is prohibited.
- What the lawyer must review
- 15 U.S.C. § 80b-6(3) makes it unlawful for an investment adviser, acting as principal for its own account, knowingly to sell a security to or buy a security from a client, or, acting as broker for someone else, knowingly to effect a sale or purchase for the client's account, without disclosing in writing before the transaction is completed the capacity in which the adviser is acting and obtaining the client's consent. The same paragraph says that prohibition does not apply to a transaction with a customer of a broker or dealer if the broker or dealer is not acting as an investment adviser in that transaction. Regulation Best Interest, 17 C.F.R. § 240.15l-1, is a broker-dealer rule for recommendations to retail customers: the recommendation must not place the broker-dealer's interest ahead of the retail customer's, judged against that customer's investment profile. There is no single federal ban in the form of the Australian conflicted-remuneration provisions. You decide which rule applies.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Potential support includes extracting and organising information. Confirm the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Confirm instructions and personal circumstances through appropriate direct engagement. Have the responsible lawyer assess safety, capacity or vulnerability concerns and escalation.
- Verify the applicable jurisdiction and the version of each relevant law, rule or instrument in force at the material time.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.
Forms and precedents for this task
| Form or precedent | Kind | AI use | Summary |
|---|---|---|---|
| Regulation Best Interest conflict procedures checklist | Checklist | AI use Yellow | Checklist for the written conflict procedures in Rule 15l-1(a)(2)(iii), including the elimination of specified sales contests. |
Signed-in accounts can read the full text of each one. All precedents.