The financial-services industry is waiting to see how the new head of the Securities and Exchange Commission's Enforcement Division, Gurbir Grewal, will interpret
Regulation Best Interest and calling for clear guidelines. "If the SEC's interpretation of Reg BI evolves as they go through their examination process, we would expect them to provide appropriate guidance or exam findings reports to the industry as opposed to widespread enforcement actions," said Robin Traxler, a senior vice president and deputy general counsel with the Financial Services Institute.
Blaine Aikin, founder and principal of Broadridge's Fiduciary Insights, says the financial-services industry is looking to Securities and Exchange Commission Chair Gary Gensler to offer a clear definition of "best interest." Such a definition was not included when the SEC launched its Regulation Best Interest in 2019, Aikin says.
The Financial Industry Regulatory Authority said it will introduce a new fingerprint process for advisory firms and funding portals by September. FINRA said firms may be able to save money on fingerprinting costs because of the rates FINRA negotiated with the new vendor, Sterling.
Firms should take real steps to help lessen racial disparities, financial planner and diversity consultant Lazetta Rainey Braxton said at the Financial Services Institute's OneVoice conference, suggesting that companies participate in minority-led conferences and improve their hiring practices. FSI created a task force last summer with the goal of increasing the number of minority and women advisors and executives.
People who have to adjust to new roles, such as retirement, can experience grief even when the change is positive, writes Amy Florian, CEO of Corgenius. Financial advisors must help their clients through these role adjustments by acknowledging their situation, asking questions and being supportive, Florian writes.
A new study by S&P Dow Jones Indices suggests passive investing has saved $357 billion for S&P traders over 25 years. "As indexing has grown, investors have benefited substantially by saving on fees and avoiding underperformance," said Anu Ganti, senior director of index investment strategy at S&P Dow Jones Indices.
Financial advisors can use clients' biases to reframe how they view retirement investing, says Jonathan Young of Capital Group. Young highlights three biases -- present bias, procrastination bias and compounding blindness bias -- and shows how advisors can present information differently to overcome them.
The Financial Services Institute is offering individual financial advisors access to major medical health insurance plans with no need to enroll in a group in all 50 states! Get savings of up to 50% versus the open market with HSA-eligible plans. Get instant rates.
It is a time in which we will redefine what it means to be human, for this is not just the start of a revolution, it is the start of an evolution.
David A. Sinclair, biologist, professor of genetics
FSI was formed in January 2004 as an advocacy and membership organization for independent financial services firms and independent financial advisors. We provide insight, information, influence, and involvement--all in support of our mission to provide visibility, credibility, and an improved regulatory environment for the independent channel. Learn more at