Fiduciary Links: Other People's Money
Posted by fi360 Team on November 04, 2013
>>>Last week, the Consumer Financial Protection Bureau released a series of documents called "Managing Someone Else's Money." These guides are geared for those who find themselves in a fiduciary role as caretaker to the assets of a loved one, such as an aging parent or the like. The guides are meant to inform these "amateur" fiduciaries that they have real responsibilities and expectations that come with the job. CFPB's guides are based on the basic fiduciary principles of acting in the best interests of the person you are caring for, the duty of care, separate custody of assets, and documentation. It's a great series that would surely be valuable to many of your clients who are in similar roles. It's also a reminder that fiduciary duty is not a matter of title, but a matter of function, and that the principles of being entrusted with another person's property are universal and timeless.
Also read the official press release and comments from CFPB Director Cordray and Assistant Director Eisenhower for more information.
>>>>If your RIA firm has yet to be the subject of an SEC exam, you might want to start getting ready for one. At a compliance event in New York last week, the director of the Office of Compliance Inspections and Examinations promised that never examined firms would be a high priority in the coming year. Of course, expert Brian Hamburger of MarketCounsel is quoted in the story as being skeptical.
>>>>In the not-fiduciary, but must read anyway category, make sure you take a few minutes to take in this story. It's about an adviser who was actively deployed in the Army National Guard, managing 100 clients in his free time, all while pursuing his MBA and raising two sons younger than 5. "I wouldn't recommend it," is Mr. Pollard's advice on taking that much on.
Now on to the rest of the week's best links:
News and columns from the leading trade, consumer, and mainstream media:
- Evaluating the threat online advice poses to traditional advisers. [InvestmentNews]
- 6 ways to bullet proof your practice from the SEC. [InvestmentNews]
- SEC to take 'swipe' at RIAs that have never been examined. [InvestmentNews]
- Treasure, IRS change FSA use-or-lose rule. [ThinkAdvisor]
- The out-of-pocket costs of going independent. [Wealth & Management]
From the organizations/associations/government/academia:
- Updated guidance on flexible spending arrangements from Treasury and IRS [IRS]
- Speaking of IRS, they announced 2014 tax rates and contribution limits this week [IRS]
- Borzi declines to reveal release of fiduciary definition rule. [NAPA Net]
- Financial regulators propose joint standards for assessing diversity policies and practices of regulated entities. [SEC]
- SEC issues proposal on crowdfunding. [SEC]
- CEFEX certifies Pension Planning Consultants, Inc of Albuquerque, New Mexico. See the release here. [CEFEX]
- CEFEX certifies Smart Investor of Rocklin, California. See the release here. [CEFEX]
From the blogs:
- Using social proof to help clients make better financial planning decisions. [Nerd's eye view]
- Fake parakeets and pension risk management. [Pension Risk Matters]
- What to do when an online community starts to fail. [Harvard Business Review]
- Is the era of the monolithic RIA custodian coming to an end? Part 1. [RIABiz]
- Coming soon from a 401k plan sponsor near you: a new and improved focus on participant education. [Fiduciary News]
Articles your clients are reading (or should be):
- 5 ways rookie investors can avoid costly mishaps. [U.S. News]
- What your financial advisor should not tell you. [U.S. News]
- A simple guide to IRA rollovers. [U.S. News]
