When investment advisers who are dually registered as brokers determine which side of the business to place a client's account, they need to be prepared to defend that decision, compliance experts at the securities law firm Sutherland, Asbill & Brennan are cautioning.

That's because the feds are taking a hard look at account selection. It’s part of their aim to crack down on what's known as reverse churning, the practice of parking a client's assets in a fee-based advisory account when little or no trading is likely to occur, according to Brian Rubin, a Sutherland partner.

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