April 20, 2021
FPA SmartBrief
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Top Story
The Investor Choice Act, introduced in both the Senate and House of Representatives, would ban mandatory arbitration agreements between investors and financial advisers or broker/dealers. Supporters say the bill would give investors choices on how to settle disputes and also improve the Financial Industry Regulatory Authority's arbitration process.
Full Story: WealthManagement (4/15) 
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Practice Management
Financial advisers should identify which type of firm they are leading, says consultant Angie Herbers, who categorizes businesses emerging firms, progressive firms and next-year firms. Each type serves clients in unique ways, adds Herbers.
Full Story: ThinkAdvisor (free registration) (4/15) 
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Advisers can help married couples with a simple but important task: Making sure the beneficiary designations on their IRAs are updated. Otherwise, other heirs might be able to access the accounts, and the rollover rights of the surviving spouses might be compromised.
Full Story: TheStreet (4/9) 
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Pension risk transfer (PRT) methods are one way to reduce defined benefit plans' liabilities, says finance writer Ed McCarthy. Leadership changes in a company could indicate an opportunity for an adviser to raise PRT options, suggests George Palms of Legal & General Retirement America.
Full Story: WealthManagement (4/13) 
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"Creative" marketing is typically not the most effective marketing, according to Angel Gonzalez of Snappy Kraken. Gonzalez touts the 40-40-20 rule, where 40% of the focus is on the audience, 40% is on the product or service offering, and 20% is on everything else.
Full Story: Advisor Perspectives (4/14) 
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Policy Watch
Several recent Senate bills propose changes to estate tax laws. Being aware of possible changes can help advisers better prepare planning strategies for their clients, writes Thomas Kelley of Wilmington Trust.
Full Story: WealthManagement (4/13) 
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When the IRS released its interpretation of the Setting Every Community Up for Retirement Enhancement Act's 10-year required minimum distribution rule for post-death payouts, it was not what many people in the financial industry anticipated, writes Ed Slott. The newly released publication said most non-spouse designated beneficiaries must take distributions in each of the 10 years, Slott writes.
Full Story: InvestmentNews (tiered subscription model) (4/12) 
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Following the Securities and Exchange Commission's risk alert to financial advisers regarding compliance and disclosure of environmental, social and governance investments, SEC member Hester Peirce said the regulator aims only to ensure that rules and procedures are being followed. "The SEC's role is not to assess whether any particular strategy is a good one, but to ensure that investors know what they are getting when they choose a particular [adviser], fund, strategy or product," Peirce said.
Full Story: InvestmentNews (tiered subscription model) (4/13) 
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The US Dollar Index reached the lowest point since March 18 last week, while the 10-year Treasury yield dropped to 1.528%. A statement from Federal Reserve Governor Christopher Waller that any uptick of inflation is likely to be temporary, a climbing stock market and improved risk sentiment are thought to be factors for the decline.
Full Story: Reuters (4/19) 
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Industry Report
Federal Reserve researchers attribute the global rise in personal saving to the coronavirus crisis and the government support that accompanied it, particularly in the US, where much of the financial relief went directly to households. When the crisis fades, a consumer spending surge would be beneficial to the overall economy, but the researchers play down that likelihood, noting: "There is only so much pop that pent-up demand for services such as travel, restaurant meals, and entertainment can deliver."
Full Story: Liberty Street Economics (Federal Reserve Bank of New York) (4/14) 
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Smart-beta exchange-traded funds have seen inflows of nearly $7 billion so far this month, following a record $28 billion in inflows in March. Every value-factor ETF is outperforming the S&P 500 so far this year, according to Bloomberg Intelligence, while multifactor and dividend ETFs are also performing strongly.
Full Story: Bloomberg (4/15) 
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Asset managers are poised to pick up the pace of innovation, having embraced technology to survive the coronavirus pandemic, according to a report from Apex Group. It is clear asset managers must "increase the digital enablement of their processes not only to maintain operations, but also to better meet client needs," the report states.
Full Story: Global Investor (subscription required) (4/15) 
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Expanding market breadth signals further rally
(Spencer Platt/Getty Images)
Shares from a broader range of sectors and individual firms are outperforming expectations, indicating a robust, sustainable market rally. The portion of S&P 500-listed stocks trading above their 200-day moving average has surpassed 95% to reach the highest level since October 2009.
Full Story: The Wall Street Journal (4/18) 
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FPA News
Nominations Open: Heart of Financial Planning Award
As one of the highest honors awarded to those in the FPA community, the Heart of Financial Planning Award recognizes individuals who demonstrate commitment and passion in doing extraordinary work to contribute or give back to the financial planning community and/or the public. Notable individuals, organizations, firms or groups working in the areas of FPA member education, FPA chapter support, financial literacy, professional innovation, community education and other service-focused endeavors are excellent candidates. Submissions are due June 1. Learn more about this award or email Awards@OneFPA.org.
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How We Do What We Do: Compensation Models
Join Stephanie Trexler, CFP®; Daniel Yerger, MBA, CFP®, ChFC®, AIF®, CDFA®; Cody Garrett; and Garrett Jackson to find out what taking charge of your career looks like! As part of the "How We Do What We Do" series, this session will cover the various compensation models in financial planning and showcase how planners from around the country do financial planning. Register now.
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About FPA
The Financial Planning Association® (FPA®) is the principal membership organization for CERTIFIED FINANCIAL PLANNER™ professionals, educators, financial services professionals and students who are committed to elevating the profession that transforms lives through the power of financial planning. Through a collaborative effort to provide members with professional education, business support, advocacy and community, FPA advances financial planning practitioners through every phase of their careers, from novice to master to leader of the profession. Learn more about FPA at FinancialPlanningAssociation.org and follow on Twitter at twitter.com/fpassociation.
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