Fiduciary Links: Is a National Association of Registered Agents and Brokers in our Future?
Posted by on March 25, 2013
>>>>While sorting out how the SEC, FINRA, the states, or other will be overseeing advisors in the future continues to drag out indefinitely, Congress may be fast tracking a new organization into the insurance oversight chain. In a hearing last week, the Senate Banking Committee heard testimony on proposed legislation that would create the National Association of Registered Agents and Brokers. The organization would allow insurance agents and brokers to register with the organization in order to be licensed to sell products in all states. Some are likening this to a self-regulatory organization, while supporters say it merely streamlines what can be an onerous and costly administrative function of registering in every state the broker want to conduct business. InvestmentNews has the full story.
>>>A survey from Russell Investments found that only 31% of advisors have an IPS for all of their clients. As an organization that teaches having a well-formulated investment policy statement is one of the single most important components of the fiduciary process, it is always discouraging to see this kind of news. The survey further found a similar number of advisors reported being asked by clients to deviate from the agreed upon investment strategy, exactly one of the negative investor behaviors an IPS can help prevent. A few years ago, Blaine wrote in his Fiduciary Corner column how changes to investment strategy need to be handled via the IPS. While the column focuses on making changes to the investment strategy, you can see how the very conversation itself can help refocus a client on the purpose for the portfolio and prevent rash decisions.
>>>This is your last week to complete the annual fi360-AdvisorOne Fiduciary Standard Survey. If you haven’t already done so, please take a few minutes to complete the survey. It will help us track trends regarding the fiduciary standard and help AdvisorOne generate some coverage of fiduciary issues.
News and columns from the leading trade, consumer, and mainstream media:
- Congress is debating a rewrite of U.S. partnership rules, which may lead to higher taxes for some registered investment advisory firms, and others. [InvestmentNews]
- Financial advisors who don't create and IPS for their clients are in the majority. [InvestmentNews]
- U.S. investors remain distrustful of advisors, and are putting more of their money into the direct retail channel. [InvestmentNews]
- 401(k) loans are not usually taken out for frivolous reasons, but investors who treat it as a savings account will be penalized in the long run. [InvestmentNews]
- Advisors pitching their services in marketing materials may want to consider these seven tips to avoid SEC compliance audits. [AdvisorOne]
- Mary Jo White gets the Senate Banking nod to be the next SEC Chief, moving her nomination to the full Senate. [AdvisorOne]
- There is an app for nearly everything these days, but when it replaces an advisor's personal relationship with a client, it's not a good thing. [WealthManagement]
- A recent survey revealed that 75% of people 15 years or more from retirement did not have an advisor, the majority claiming they could do it themselves. Learn how to turn these folks into clients. [FinancialPlanning]
From the blogs:
- Most Social Security examples assume that the spouses are the same age, or the man is slightly older. In the case of an older, lower-earning wife, the couple has fewer choices. [Retirement 2.0, InvestmentNews]
- Trending Topics for ERISA Plan Sponsors [FiduciaryNews]
- Many company officers who play roles in company benefit plans are 'accidental fiduciaries' and largely unaware of their responsibilities. [BostonERISALaw]
- The moral hazard of uninformed consent, and how it relates to to the 401(k) advisor-plan sponsor relationship. [prudentchampion]
From the organizations/associations/government/academia:
- SEC published Finra's proposal to make pending regulatory complaints more visible to public on the SEC website, for comment. [SEC] You can read more about Finra's proposal here. [InvestmentNews]
- CEFEX announces the certification of Praxis Consulting, associated with NFP Securities Inc in Sacramento, California [CEFEX]
- Read thoughts on a uniform fiduciary stand, and examine the positions of investment advisors and brokers. [TDAInstitutional]
Articles your clients are reading (or should be):
- Here are five tests you can use to stress test your retirement plan. [USNews]
- Advisors know the importance of emergency funds, especially to prevent clients from making 401(k) withdraws. Send them to this article - with 4 ways to boost your emergency fund. [USNews]
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