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December 6, 2012
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Advocating Direct Investments through Education

  Top Stories 
  • Nontraded BDCs are on track to double sales
    Nontraded business-development companies appear set to reach sales this year roughly double last year's $1.2 billion total, even though the first such fund closed to investors in May. One question hanging over the market is whether nontraded real estate investment trust sponsors with BDC offerings have the background to invest well in the sector. InvestmentNews (free registration) (11/28) LinkedInFacebookTwitterEmail this Story
  Policy Update 
  • FINRA may require brokers changing firms to disclose incentives
    Amid concerns that some brokerage recruiting practices hold the potential for harm to customers, the Financial Industry Regulatory Authority is weighing a rule that would require disclosure of compensation packages that brokers receive for changing firms. One worry is that certain incentives may lead brokers to encourage clients to sell out of proprietary products without regard to their clients' best interests. The Wall Street Journal (11/29) LinkedInFacebookTwitterEmail this Story
  • SEC to lose 3 more top officials
    Three more top officials of the Securities and Exchange Commission have announced plans to leave the agency. Robert Cook, head of the trading and markets division, and Meredith Cross, director of the corporate finance division, said they plan to return to the private sector at the end of the year. The regulator's general counsel, Mark Cahn, will leave after an undefined "transitional period." AdvisorOne (12/5), The Washington Post (12/5) LinkedInFacebookTwitterEmail this Story
  • SEC plans to move forward on fiduciary standard
    Creating a uniform fiduciary rule for financial advisers and brokers is a high priority next year for the Securities and Exchange Commission, the regulator says. The SEC's next chairman, Elisse Walter, is a longtime supporter of harmonizing rules that govern financial advisers and broker-dealers. AdvisorOne (12/3) LinkedInFacebookTwitterEmail this Story
  • Krawcheck seen as viable contender for SEC top post
    Former banking executive Sallie Krawcheck has been meeting with lawmakers in recent months, fueling speculation that she might be a contender for the Securities and Exchange Commission chairmanship or some other regulatory position. "She has always been willing to take controversial views and she gets the industry," says Gary Black of Calamos Asset Management, who worked with Krawcheck. "She brings a practical view on how to regulate the industry." Reuters (12/3) LinkedInFacebookTwitterEmail this Story
  Industry News 
  • Apple REIT Six merger accord is a boon to investors
    Apple REIT Six's agreement to merge with an affiliate of Blackstone Group will produce a small immediate return for Apple holders, with each receiving $11.10 in value per share, compared with the $11 paid. The investors, all clients of David Lerner Associates, will also collect distribution of 7% to 8% annually during the REIT's lifetime. InvestmentNews (free registration) (11/30), The Wall Street Journal (11/30) LinkedInFacebookTwitterEmail this Story
  • Private REITs offer less volatility, but risk remains
    Private real estate investment trusts offer an attractive alternative to public REITs for wealthier investors, with more stable unit prices subject to the appraised value of properties, rather than the market. "The market decides what [a public REIT] is worth on a minute-by-minute basis. Private REITs are less volatile," said David Kaufman, president of Westcourt Capital, a consultancy specializing in alternative investments. However, due diligence is important because private REITs receive less regulatory scrutiny. The Globe and Mail (Toronto) (tiered subscription model) (12/5) LinkedInFacebookTwitterEmail this Story
  Income Planning 
  • How to plan for retirement despite income volatility
    Workers who have fluctuating incomes, such as artists, musicians and entrepreneurs, can still plan for retirement, experts say. They need to focus on savings and living below their means, and they should maintain separate bank accounts for their personal and work finances, according to advisers. They might also consider part-time jobs that would provide a steady steam of income. Financial Planning (12/2012) LinkedInFacebookTwitterEmail this Story
  • 2012 has brought many new rules for annuities
    Several states have enacted regulations this year that affect insurers that sell annuities, writes Kathy Donovan of Wolters Kluwer Financial Services. Unclaimed property; the method by which claims are settled; senior protections; and annuity contracts, riders and nonforfeiture standards are key areas addressed by the rules, she writes. Further action on retained-asset accounts, unclaimed property and consumer protection is likely in 2013, she adds. National Underwriter Life & Health (11/28) LinkedInFacebookTwitterEmail this Story
  • Survey: Generation Y leads in seeking investment advice
    Eighty-four percent of Generation Y is seeking financial advice, compared with 76% of all Americans, a Merrill Edge study says. Many of those born between 1979 and 1991 have entered the workforce at a time of economic turmoil. "They want to take action," said Alok Prasad, head of Merrill Edge. Reuters (11/29) LinkedInFacebookTwitterEmail this Story
  Business Best Practices 
  • Steps advisers should take to protect against regulatory actions
    Advisers should take steps to protect themselves against state and federal regulatory agencies that are stepping up compliance activities, Tom Giachetti says. Advisers should document all processes, especially if third-party asset managers are involved, and they should have current and signed confirmations from clients who want to move to cash, especially during the "fiscal cliff" negotiations. Giachetti also recommends staying away from ill-defined terms such as "assets under advisement." AdvisorOne (11/30) LinkedInFacebookTwitterEmail this Story
  • Advisers strive for proper tech incorporation
    For the first time, having the right technology to make it through difficult times is a top concern of financial advisers, according to the 2012 Scottrade Advisor Services Study. Almost half of advisers polled said the economy has changed how they run their business; as a result, many have updated software or hardware. AdvisorOne (12/3) LinkedInFacebookTwitterEmail this Story
  IPA Member Information 
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Courage is going from failure to failure without losing enthusiasm."
--Winston Churchill,
British prime minister

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