IPA Newsbrief, powered by SmartBrief

Reading this on a mobile device? Try our optimized mobile version here: http://r.smartbrief.com/resp/emshCfbwocfDxvktSWXU

March 7, 2013

Advocating Direct Investments through Education

Top Stories

SEC calls for feedback on fiduciary plan
The Securities and Exchange Commission has requested information from the public and the financial services industry pertaining to possible changes to fiduciary standards for brokers. The SEC is seeking information about the benefits and costs of different fiduciary mandates. "Gathering further data is the appropriate next step forward," said Ira Hammerman, general counsel of the Securities Industry and Financial Markets Association. Reuters (3/1), AdvisorOne (3/1)

Policy Update

SEC finds erroneous compliance with custody rule among advisers
The Securities and Exchange Commission has discovered compliance deficiency in one-third of investment advisers reviewed regarding a rule governing the custody of clients' funds. "We take deficiencies in this area very seriously and want to put advisers on alert about the importance of complying with the custody rule," said Carlo di Florio, director of the SEC Office of Compliance, Inspections and Examinations. Reuters (3/4), InvestmentNews (free registration) (3/4), AdvisorOne (3/4)

Lawyer cites areas to watch on DOL's fiduciary rule
When the Labor Department reproposes its fiduciary rule, issues likely to draw scrutiny are the precise formulation of prohibited-transaction exemptions, the way the rules affect the IRA marketplace and the way rollover solicitations will be treated, says Brad Campbell, an attorney with Drinker Biddle & Reath and the former head of the Employee Benefits Security Administration. AdvisorOne (2/28)

Industry News

Hazen steps down from investment-management post at Hines
Charles Hazen is retiring as senior managing director and divisional CEO for Hines' investment-management group. His replacement is Sherri Schugart. GlobeSt.com (3/1)

12 changing trends for financial advisers
Several trends are emerging in financial planning that advisers should watch and position themselves to address. Some are entirely new; others represent changes in thinking in existing areas. These trends include longevity risk and compensation shifts, as well as newer factors such as crowdfunding, artificial intelligence, security and the cloud, and outsourcing. Financial-Planning.com (3/1)

Sponsors should rethink retirement-plan approach, expert says
Inertia and procrastination are among the top five problematic investor behaviors that will never change, and retirement-plan sponsors should rethink plan structures to work around them, says Greg Kasten, founder of Unified Trust. For example, Kasten says, plan sponsors should give participants a savings goal at enrollment meetings if they don't have one. Putting participants in a target-date fund is not enough, he says. AdvisorOne (3/4)

Study looks at contributions by those with both IRA and 401(k)
Workers who have both an IRA and a workplace 401(k) had an average total balance of $225,000 on Dec. 31 and contributions of about $11,000 during the year, Fidelity says. "By maximizing the long-term, tax-advantaged growth potential of both workplace savings plans and IRAs, investors can create a personalized plan to help them achieve better outcomes in retirement," Fidelity's James MacDonald says. Financial Advisor online (2/28)

Income Planning

Startup offers trend-based investment choices
A company called Motif allows investors to buy "motifs" -- groups of stocks that fit a certain theme. For example, there's a "Tablet Takeover" motif that favors stocks related to tablet computers. Motif is one of a few startups that are trying to disrupt traditional investment models. "There's room for these niche players if they can get some traction," said Gartner analyst David Schehr. The Miami Herald (free registration)/The Associated Press (2/28)

Deferred-income annuities are starting to catch on
New York Life's deferred-income annuity product has exceeded $1 billion in sales, which points to its growing appeal, possibly because of larger annual payouts than immediate annuities. "They want a pension," Matt Grove of New York Life says about the product's buyers. Deferred-income annuities still represent a fraction of all annuity sales, but more insurers are offering them. MarketWatch/Encore blog (2/26)

Labor Department guidance touts nonproprietary target-date funds
New guidance from the Labor Department recommends that plan sponsors check whether providers offer nonproprietary target-date funds. The guidance suggests that such funds "may not be right for every plan" but "offer advantages by including component funds that are managed by fund managers other than the TDF provider itself, thus diversifying participants' exposure to one investment provider." Ignites.com (subscription required) (3/4)

IPA Member Information

IPA 2013 Spring Conference: Investor Focused Innovation -- May 8 to 10 in Washington, D.C.
Registration is open for the IPA 2013 Spring Conference: Investor Focused Innovation, scheduled May 8 to 10 at the Capital Hilton hotel in Washington, D.C. Register!

Learn more about IPA ->

IPA Home Page | Conferences | Education | Advocacy

SmartQuote

It is with words as with sunbeams -- the more they are condensed, the deeper they burn."

--Robert Southey,
British poet

Subscriber Tools

Print friendly format | Web version | Search past news | Archive | Privacy policy