Under US Treasury Secretary Steven Mnuchin, the Financial Stability Oversight Council could become a vehicle to change how the Dodd-Frank Act is interpreted and enforced. "FSOC's ability to prod regulators to do something they aren't otherwise doing can be incredibly powerful," said Dennis Kelleher, president and CEO of Better Markets.
In case you missed it ... IMCA's Annual Awards Ceremony at the 2017 Annual Conference Experience is now online. Five prestigious awards were presented to members for their outstanding contributions to the investment and wealth management industry. View the Awards Ceremony to see who was honored.
Strategic Investor Radio shares a podcast with Fred Reish, J.D., partner, Drinker Biddle & Reath LLP, on the impact of the Department of Labor's fiduciary requirements on investment managers. Taped at IMCA's 2017 Annual Conference Experience, listen here.
Numerous academic studies have shown that the assets of wealthy families fail to make it through three generations 70% of the time, according to Justin Miller of BNY Mellon Wealth Management. He outlines four crucial steps that advisors can take to help families preserve wealth and keep their legacy intact.
Offering more than straightforward investment advice, listening more than speaking and never underestimating clients' financial acumen are among recommendations from successful advisors to obtain clients with seven-figure assets.
The proliferation of custom indexes means that the number of indexes is now greater than the number of stocks in US markets. The repackaging of active strategies into special indexes has become popular with investors, prompting the creation of ever more indexes to satisfy demand.
The advisory industry is facing a shortage of labor, as the workforce ages and a large pool of talent is absorbed by firms offering hybrid services. By 2022, the shortfall is expected to hit 200,000, according to consulting firm Moss Adams.
Paolo Sironi of IBM Watson Financial Services says he expects more advisors to charge an hourly fee, rather than a percentage of assets under management, as margin comes under pressure. Sironi predicts success for advisors who automate back-office processes as much as possible so they can focus on client service.
The Labor Department issued a bulletin assuring financial professionals that enforcement of its new fiduciary rule will be limited during a "phased implementation period" that ends Jan. 1. "[T]he Department will not pursue claims against fiduciaries who are working diligently and in good faith to comply with the fiduciary duty rule and exemptions, or treat those fiduciaries as being in violation of the fiduciary duty rule and exemptions," the bulletin said.
The fact the Labor Department has decided it doesn't have legal grounds to delay the effective date of its new fiduciary rule beyond June 9 doesn't mean the agency can't change it later, said lawyer Seth Safra. The department has "a lot of authority" to amend the rule or propose an entirely new one as long as it complies with the public notice and comment requirements of the Administrative Procedures Act, he said.
The courts in Florida have sent out some confusing messages about a law adopted by the state Legislature that guarantees traditional lawyer-client privilege between lawyers and fiduciaries, even if the fiduciary has a duty to a beneficiary. Two state legal committees are hoping to sort the issue out with the state Supreme Court.
My relationship with death remains the same -- I'm strongly against it.
Woody Allen, director, screenwriter and actor
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