CEOs abandon fight against tax increases for the wealthy | Register Now for the IMCA 2013 New York Consultants Conference Feb. 4–5! | Seven Notable Industry Experts to Deliver Keynote Presentations at IMCA’s 2013 Annual Conference
December 13, 2012
News for investment consulting and wealth management professionals
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CEOs abandon fight against tax increases for the wealthy
Pressing for a compromise that could break the fiscal deadlock in Washington, D.C., and avoid the "fiscal cliff," a long list of top chief executives dropped their opposition to tax increases for wealthy Americans. "We recognize that part of the solution has to be tax increases," said Honeywell CEO David Cote. "That's the only thing that allows a reasonable compromise to be reached." The New York Times (free-article access for SmartBrief readers) (12/11), American City Business Journals/Washington Bureau blog (12/12)
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IMCA® Update
Register Now for the IMCA 2013 New York Consultants Conference Feb. 4?5!
IMCA's 2013 New York Consultants Conference is less than two months away, Feb. 4-5 at the Marriott Marquis in Times Square. Sessions and speakers include:

  • Lies My Finance Professor Told Me | Andrew Lo, MIT Sloan School of Management, and co-author of A Non-Random Walk down Wall Street
  • Debt Ceiling/Fiscal Cliff Update: Implications of Where we are Today |Robert Pozen, senior lecturer at Harvard Business School and former chairman of MFS Investment Management
  • The Endowment Model 2.0: Adopting more "Endowment-Like" Strategies for Advisors: Why Endowments Outperform Other Investors | Mark Yusko, Morgan Creek Capital Management

Click here to visit the conference webpage and register now.
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Seven Notable Industry Experts to Deliver Keynote Presentations at IMCA?s 2013 Annual Conference
IMCA recently finalized its 2013 Annual Conference speaker lineup, with seven experts slated to present. The IMCA Annual Conference is April 28–May 1 at the Washington State Convention Center in Seattle, and registration is open now. Keynote speakers include:

  • Nassim Nicholas Taleb, Distinguished Professor of Risk Engineering at New York University Polytechnic Institute and the author of The Black Swan
  • Neil Borofsky, former Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and adjunct professor and senior fellow at the Center on the Administration of Criminal Law and the Mitchell Jacobson Leadership Program on Law and Business
  • Meredith Whitney, called "The Oracle of Wall Street" by Bloomberg, and chief executive officer of Meredith Whitney Advisory Group, LLC, a macro and strategy-driven investment research firm

Visit for the entire list of speakers and to register for the conference.
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Introducing the New Investments & Wealth Monitor Mobile App
A new Investments & Wealth Monitor mobile app is now available for Apple iPad and iPhone, and Android devices. Download the app to read the recently published November/December issue on the future of investment consulting. With the new app, you can:

  • Read current and past issues of Investments & Wealth Monitor, free for IMCA members
  • Download available issues and access them offline at any time
  • Share content with colleagues via e-mail and social media

To download the free app, visit your device’s marketplace and search "Investments & Wealth Monitor," or follow these links: Android smartphone or tablet. iPhone or iPad at Apple App Store. Click here for more information. If you or your firm are interested in sponsoring the app, contact Lara Davies at
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Other News
Product announcements appearing in SmartBrief are paid advertisements and do not reflect actual IMCA endorsements. The news reported in SmartBrief does not necessarily reflect the official position of IMCA.

Wealth Management
IMCA white paper defines wealth management
The Investment Management Consultants Association published a white paper that defines the practice of wealth management. The paper includes an overview of the high-net-worth market and describes what skills advisers need to serve those clients. Business Insider (12/11)
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Wealthy investors brace for fiscal fallout
Rich Americans are beginning to move their investments around in a bid to shield their wealth from the likely impact of a deficit deal. There isn't much that less-wealthy taxpayers can do to avoid being affected, experts say. "You're not going to refuse your paycheck because the taxes are higher," says Roberton Williams of the Tax Policy Institute. "The people that can make adjustments, who can change the way their world works, are the wealthy." The Washington Post (tiered subscription model) (12/11)
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Alternatives play growing role in investors' portfolios
Alternatives can add yield to a portfolio, but these assets also come with risk. Still, many advisers think these investments are worthwhile. More than 75% of institutional investors see alternative investments as essential to diversification, according to studies, with 72% believing that the typical mix of 60% stocks and 40% bonds is no longer an efficient way to achieve returns. Myths about alternative investments include the idea that a 60/40 stock/bond portfolio has low volatility, one expert says. In addition, the term "uncorrelated" can be misleading. AdvisorOne (12/7)
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Hard times for some hedge funds
At least eight hedge funds in recent weeks announced plans to shut down. Uncertain markets and investors with shorter-term horizons have been cited as reasons, along with difficulty in making money. The recent shutdowns "demonstrate a tough time for the industry in general, regardless of strategy," says Michele Gesualdi, a fund manager at Kairos Partners. "Probably next year it will be even worse in terms of closures, but reduced competition should help performance improve." The Wall Street Journal (tiered subscription model) (12/6)
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Investors flock to donor-advised funds
Donor-advised funds have surged in popularity with investors that want to give to charity in the years to come and want a large tax deduction now. Many investors fear that the charitable deduction will be eliminated or capped in the coming years. The Wall Street Journal (tiered subscription model) (12/11)
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Industry Updates & Trends
Fed steers large banks away from acquisitions
Sources say the Federal Reserve is discouraging large U.S. banks from acquisitions as the debate continues over the risk those banks pose to the financial system. For example, U.S. banks interested in acquiring Bank of America's non-U.S. wealth-management operations didn't pursue a purchase after informal talks with the Fed, sources say. "The Fed looks like it is drawing a new line in the sand," said RBC Capital Markets banking analyst Gerard Cassidy. The Wall Street Journal (tiered subscription model) (12/11)
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TD Bank to expand wealth management with Epoch deal
Toronto-Dominion Bank will buy American asset manager Epoch Holding for $668 million in cash as part of the Canadian bank's effort to increase its U.S. business with wealthy clients. "It instantly adds heft to our U.S. strategy," said Mike Pedersen, group head of wealth management, insurance and corporate shared services. "It fills the gap we have in the asset-management business." The Wall Street Journal (tiered subscription model)/Dow Jones Newswires (12/6)
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China's wealth-management products notch huge growth
Chinese investors have been boosting the growth of risky wealth-management products nationwide by 100% a year recently, and over this year's first three quarters they've accounted for 18% of total social financing, according to Du Jinfu, the disciplinary head of China's banking regulator. The lightly regulated shadow banking system under which some of these products fall has raised concerns after customer protests and the detention of several people said to be involved in illicit sales at Huaxia Bank. Caijing Magazine online (12/11)
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Practice Management
How advisers can bridge a disconnect with clients
There is often a disconnect between high-net-worth clients and advisers in their understanding of the investment market and of how easy it will be to reach their goals, writes Jim Brogan, president and founder of Brogan Financial. To bridge this gap, Brogan advises asking questions of clients that will help them realize the risks that could undermine their investment approach. National Underwriter Life & Health (11/30)
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Poll: Many younger investors favor video meetings
About 62% of high-net-worth investors younger than 55 would like to meet with their financial advisers via video at least some of the time, according to a survey by Cisco Internet Business Solutions Group. Among younger investors, about 57% said they would contemplate moving some assets to a firm that offered video meetings, compared with 19% of older investors. "Anything that saves this group time is important," says Ted Jenkin of oXYGen Financial. InvestmentNews (free registration) (12/7)
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Regulatory & Legislative Spotlight
FINRA guidance better explains suitability rules
The Financial Industry Regulatory Authority has issued guidance to give financial advisers a clearer and more specific explanation of suitability rules. Violation of suitability rules has been the most common basis for FINRA enforcement action against advisers this year. Financial Planning (12/2012), The Wall Street Journal (tiered subscription model) (12/11)
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Courage is going from failure to failure without losing enthusiasm."
-- Winston Churchill,
British prime minister
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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.

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