§ 28212 Investment Advisor Contract Approval

• •The big bosses (like the board of directors) must say 'yes' to any contract with someone who gives advice on how to invest the company's money.
• •This rule is for companies that have a special license.
• •The company can't just hire someone to give investment advice without the big bosses checking and agreeing first.

A bank wants to hire a financial advisor to help them decide where to invest their money.

The bank's board of directors must meet, look at the contract with the financial advisor, and all agree to hire them before the advisor can start giving advice.