US states such as Nevada, Connecticut, New York, New Jersey, Massachusetts and California have either signed into law legislation putting in place fiduciary requirements for brokers or are considering it as the federal government ponders rolling back its own rule. In some cases, the states' legislation goes beyond the tax-advantaged retirement savings regulated by the federal rule and calls for brokers to uphold a fiduciary standard for all accounts.
We're at capacity, but there is a wait list for Focus on Investing for Decumulation, Sept. 18 at the Four Seasons Hotel in Toronto. This event will teach advisors how to answer client questions and maximize income streams after the wealth accumulation phase ends the retirement savings spending phase begins. Email firstname.lastname@example.org if you would like to be placed on the wait list.
With many people reeling from the devastating effects of recent hurricanes, advisors discuss whether victims should make withdrawals from their 401(k) plans to pay for home repairs. The IRS has made it easier to withdrawal the funds, but advisor Therese Nicklas notes that a loan may be preferable to an early withdrawal from a tax and penalty standpoint.
Brendan McCarthy of investment management firm Nuveen urges advisors to review any target-date funds they have in place in light of the Department of Labor's fiduciary rule. He points out that funds that were added to retirement plans a decade ago may now be inappropriate.
Carolyn McClanahan of Florida-based Life Planning Partners wrote a day-to-day account of the effect Hurricane Irma had on her business and clients. With several of her clients significantly affected, she noted that there are now numerous challenges to tackle, particularly relating to insurance coverage and emergency individual retirement account withdrawals
Rep. Brad Sherman, D-Calif., says he may push for legislation to enforce transparency on how the Financial Industry Regulatory Authority spends the revenue it receives in fines, which totaled $173 million in 2016. At a House Financial Services subcommittee hearing last week, FINRA CEO Robert Cook said he was "very open" to providing further insight on how fine money is used.
The Financial Industry Regulatory Authority might make public "data in bulk" on broker-dealers that employ brokers with a history of violating securities rules, said CEO Robert Cook. The approach would let clients "see patterns at the firms," he said.
Rep. Ann Wagner, R-Mo., chairwoman of the House Financial Services Committee's Oversight and Investigations Subcommittee, said she will introduce a bill this month to repeal the Labor Department's fiduciary rule and to replace it with a best-interest standard for broker-dealers. "It gets the Department of Labor out of the broker-dealer space," she said.
Robo-advisors' quick expansion has made them a focus of Securities and Exchange Commission inspections this year, said Office of Compliance Inspections and Examinations acting Director Pete Driscoll. "For us, looking at electronic investment advice is very important for us to get our hands around," he said.
Competence, like truth, beauty and contact lenses, is in the eye of the beholder.
Laurence J. Peter, educator and writer
Based in Denver, Investment Management Consultants Association® (IMCA®)
was established in 1985 to deliver the premier investment consulting and
wealth management credentials and world-class educational offerings—membership,
conferences, research, and publications. The cornerstone of IMCA® is the
Certified Investment Management Analyst® (CIMA®) certification, the only
advanced certification designed specifically for investment consultants.
IMCA® also delivers the advanced credential for wealth management professionals
working with high-net-worth clients, the Certified Private Wealth Advisor®
(CPWA®) certification. Visit
for more information.
IMCA® and Investment Management Consultants Association® are registered
trademarks of Investment Management Consultants Association Inc. CIMA®,
Certified Investment Management Analyst®, CIMC®, CPWA®, and Certified
Private Wealth Advisor® are registered certification marks of Investment
Management Consultants Association Inc. Investment Management Consultants
Association Inc. does not discriminate in educational opportunities or
practices on the basis of race, color, religion, gender, national origin,
age, disability, or any other characteristic protected by law.
Phone: (303) 770-3377
Fax: (303) 770-1812
5619 DTC Parkway Suite 500
Greenwood Village, CO 80111