Investment advisers and their firms are facing increased scrutiny from state regulators following enactment of the Dodd-Frank financial reform act and the high profile press coverage of the Madoff ponzi scheme and other fraudulent activities. The number of regulatory enforcement actions against investment advisers increased by 100 percent in 2011. Regulators are on the lookout for improper practices and advice that may be fraudulent. ( See “State actions against investment firms rise dramatically,” by Liz Skinner, InvestmentNews).