Conducted by CFO Research in cooperation with Prudential Financial, Inc., the research reveals that the subset of executives who have shifted pension risk to an insurer had three primary concerns about costs and volatility— concerns that drove their consideration of various options for transferring pension risk. Persistent asset-related volatility,…
Advisor News
A top Federal Reserve official suggested Monday that the Fed will likely announce next month that it will begin paring its bond portfolio— a step that could lead to slightly higher rates on mortgages and other loans.
MINNEAPOLIS – August 14, 2017 – Although Americans rank inflation as their main economic worry, many do not have a…
State Pension Plans Worse Than Workers and Advisors Realize
A new study finds the nation’s public pension plans are in worse shape that originally thought due to sketchy accounting practices. What is the answer and how can advisors help?
The Securities and Exchange Commission announced that it has obtained a final judgment against a Pittsburgh, Pa.- based financial adviser accused of taking money without permission from the accounts of several professional athletes in order to invest in movie projects and make Ponzi-like payments and then lying to SEC examiners who uncovered the…
After deleveraging in the aftermath of the last U.S. recession, Americans have once again taken on record debt loads that risk holding back the world’ s largest economy. Household debt outstanding— everything from mortgages to credit cards to car loans— reached $12.7 trillion in the first quarter, surpassing the previous peak in 2008 before the effects of the…
On Aug. 4, Wells Fargo announced a $108 million settlement involving refinanced loans affecting the federal Veterans Administration. The plaintiffs accused Wells Fargo of charging “impermissible” closing or origination fees to borrowers under a U.S. Department of Veteran Affairs’ loan guaranty program, and then making false statements to the VA concerning…
By a News Reporter-Staff News Editor at Investment Weekly News– Three firms-American Funds, Empower Retirement and Voya-are giving Fidelity Investments and Vanguard a run for their money in the 401 market. These and other findings are from Retirement Planscape ®, an annual Cogent Reports™ study by Market Strategies International. “While the other firms are…
The Securities and Exchange Commission delayed a decision on whether to give a group of Chinese companies the go-ahead to buy the 135-year-old Chicago Stock Exchange.
Assessing the ‘Race to the Bottom’ Between Fidelity and Vanguard
In a direct swipe at Vanguard, Fidelity slashes fees on 14 of its flagship funds. Is there an opening for the Boston-based giant to take down low-fee Vanguard?
—A former Bismarck securities and insurance agent accused of defrauding investors out of more than $3 million is facing criminal charges in federal court. An investigation by the North Dakota Securities Department accuses Wanner of selling counterfeit CDs to his clients and recruiting them to an investment group called the Bulls and Bears Investment Club.
—A member of the Federal Reserve’s interest-setting committee said Wednesday it would be appropriate for the central bank to announce next month that it will begin trimming its $4.5 trillion balance sheet, but wait until December before raising a key interest rate again. The Fed’s two goals are to pursue interest-rate policies that foster maximum…
DOL Seeks 18-Month Delay of Fiduciary Rule
If approved, documents sent to the Office of Management and Budget today would delay phase two of the Department of Labor fiduciary rule by 18 months to July 1, 2019.
An investor group related to Chongqing Casin Enterprise Group is seeking SEC approval of the deal. Robert Pittenger, R- N.C., urged the SEC in July to reject the proposed acquisition, calling it “a threat to the United States’ financial security and Americans’ faith in our national financial market infrastructure.” In his letter to the SEC, Pittenger emphasized a lack…
Helping Clients Intent on Getting a D-I-V-O-R-C-E
Divorce is incredibly costly and the right advisor can save a client a bundle — or at least limit the expense. Some experts share tips for preparing and protecting a client headed for splitsville.
IRI: 155,000 Clients Dumped by Advisors Due to DOL Rule
The first phase of the Department of Labor fiduciary rule went into effect June 9. Industry firms are reporting substantial impacts so far, with IRI members having dropped 155,000 clients to date.
“Following the transition, the funds will offer investors pure exposure to discrete segments of the U.S. Treasury market and provide them the flexibility to tailor their bond portfolios to reflect their risk and return objectives,” said Greg Davis, Vanguard’s chief investment officer. Following the transition, advisors, institutions, and individual…
The Acting U.S. Attorney for the Eastern District of New York, Bridget M. Rohde, issued the following news release:. Erb entered his guilty plea before United States Magistrate Judge Anne Y. Shields at the federal courthouse in Central Islip, New York. The sentencing was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York,…
The Insured Retirement Institute issued the following news release:. The Insured Retirement Institute submitted a response to the Department of Labor’s Request for Information showing the harmful effects already occurring under the partial implementation of the fiduciary rule. Through IRI’s latest comment letter, the Department of Labor was presented…
A few states are trying to help their workers plug the retirement savings gap, but they’re getting pushback from Congress and President Donald Trump’s administration. The Treasury spent $70 million to launch and run the program, so the cost-benefit ratio wasn’t good. MyRA invested in ultra-safe Treasury bonds, charged no fees and was available by payroll…
“We’ve had a pretty good run for the last half year,” said Lars Kuehn, an associate professor of finance for Carnegie Mellon University’s Tepper School of Business. Volatility, a measure of swings in stock prices, is the lowest it’s been since at least 1972, the Associated Press reported. That probably won’t last, particularly if Washington continues to stall on…
Robos, RIA Movement, Highlight Major Advisory Trends
New RIA relationships and the growth of roboadvisories are major trends in the industry, as found in the latest Schwab quarterly report. Analysts say both issues will be felt by industry players for many years to come.
Beware the “kiddie tax,” which applies to unearned income (including distributions from traditional IRAs).
Advisory Growth, Revenues, in Decline, Report Finds
Financial advisory growth has stymied, with fewer active advisors in play, and per-advisor revenues in decline, a new report finds. What are the factors in play?
Aug. 01– The company that Chauncey Waddell and Cameron Reed founded 80 years ago is taking the men’s names off its mutual funds. Both brands are managed by Waddell& Reed Financial Inc.. CEO Philip J. Sanders said the mergers reflect in part the greater name recognition of the Ivy Funds in the market.
The new Department of Labor fiduciary rules could have implications for cyber-security systems if they are not strong enough. Client personal information must be securely protected under the rule’s Impartial Conduct Standards.
Confidence Should Keep Markets Humming for Rest of 2017
Consumer confidence is at a nearly 16-year high, experts point out, a major indicator that the markets will continue to expand for the rest of 2017. But if confidence indicators flag, be wary of a crash.
_ LPL Financial Holdings Inc. on Thursday reported second-quarter earnings of $68.4 million. Four analysts surveyed by Zacks expected $1.05 billion. LPL Financial shares have climbed 28 percent since the beginning of the year.
_ Principal Financial Group Inc. on Thursday reported second-quarter net income of $309.5 million. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of $1.22 per share. Principal Financial shares have increased 15 percent since the beginning of the year, while the Standard& Poor’s 500 index has increased 11…
–LPL Financial Holdings Inc. today announced results for its second quarter ended June 30, 2017, reporting net income of $68 million, or $0.74 per share. This compares with $48 million, or $0.53 per share, in the second quarter of 2016 and $48 million, or $0.52 per share, in the prior quarter. “We remain focused on our strategic priorities of growing our core business…
Another quarter with double-digit earnings growth for the S&P 500 appears likely for the second period of 2017, analysts say. How long with the bulls keep running?
_ Legg Mason Inc. on Wednesday reported fiscal first-quarter profit of $50.9 million. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of 43 cents per share. Three analysts surveyed by Zacks expected $779.2 million.
The Federal Reserve appears committed to normalizing interest rates further and initiating its balance sheet reduction this year, experts say.
July 26– Ameriprise Financial Inc.’ s second-quarter profit jumped 17 percent, pushed upward by investor clients eager to ride the rising stock market and the company’s efforts to control expenses. The Minneapolis- based financial advisory firm said Tuesday it earned $393 million, or $2.50 a share, in the April-to-June period. Fee-based inflows amounted to…
July 25– A former Truckee man has been indicted in an alleged investment fraud scheme in which investors lost $1.7 million. Patrick Slavin, 55, was arraigned Tuesday in federal court in Sacramento. A 21- count indictment charges him with mail and wire fraud for an investment scheme he allegedly ran from 2008 through 2016, according to a U.S. Attorney’s Office…
How to build trust so that prospects trust you even before they meet you and become clients much more rapidly.
July 25– A longtime North Dakota broker has been issued a cease and desist order from North Dakota’s top securities regulator after an investigation found she continued to act as a brokerage agent after losing her license. Susan L. Welo, who worked most recently at Cetera Advisor Networks in Mayville, N.D., has been doing business under the trade name Welo Wealth…
Merger-and-acquisition transactions in the first half of 2017 rose 15 percent to a record 82 deals compared with the year-ago period, new data finds.
Retiring early means confronting a host of sensitive and significant planning questions. Knowledgeable advisors can help their clients get the right answers.
Customer experience is a key competitive advantage that is essential for advisors to attract and retain satisfied clients, is fundamental…
BRYN MAWR, PA, July 24, 2017 – Only 18% of retirement-age women can pass a basic quiz on how to…
Value of Advisors Underscored by Annuity Program Pilot
A pilot, Direct-to-Consumer annuity offering by Nationwide is generating plenty of useful data about consumer habits and their needs to speak to live advisors.
A deadline to comment on the controversial Department of Labor fiduciary rule expires at midnight Friday.
Advisors: Little Change to Client Fees, Product Choice
Little disruption to clients reported by advisors as they transition to the full Department of Labor fiduciary rules, a new survey finds. Though more changes are expected if the rule is implemented as written on Jan. 1, for now the rules appear marginally disruptive.
A new study reveals that millennials and women are growing more interested in socially responsible investment options. Advisors in those demographics are moving with the trends, data shows.
Nationwide becomes the latest company to offer its first fee-based fixed indexed annuity. The new products are being developed in response to the Department of Labor fiduciary rule.
How does an advisor plan for the client who wants to work in retirement? Such a plan can improve the retirement outlook, but the pitfalls include unrealistic expectations.
July 17– Longtime Pennsylvania resident Ted Benna invented the 401 plan more than 35 years ago. Just last week, incoming Securities and Exchange Commission Chairman Walter J. Clayton referred to typical investors as “Mr. and Ms. 401,” a nod to the fact that the bulk of Americans sock away savings in corporate 401 investment plans, as opposed to having traditional…
Successful Advisors Have Robust Career Choices
With regulation, technology and other factors creating great change within the industry, financial advisors have plenty of career choices to consider. Fee-based and dually registered advisors are expected to fare well in the coming years.
What licenses do you need to sell various financial products in a Department of Labor fiduciary rule world? Our Kim O’Brien discusses the various licenses and dismisses some incorrect information.
His remarks are not out of tune with previous comments under both President Barack Obama and President Donald Trump, when he’s argued that U.S. government policymakers spend too much time arguing rather than improving the economy. The U.S. economy has been expanding at less than 2 percent a year since the Great Recession, which is below the typical growth after…
With online advice models gaining momentum in the financial services world, many traditional advisories are adopting ‘hybrid’ models that combine both robo and human aspects. Prices for these services vary, a new study found.
Break-Away Advisors Drawn to RIA Consolidators
Fee-based consolidators of investment advisors are closing bigger and bigger M&A deals, analysts say. Seven of the top 10 brokers measured by AUM who moved from the captive channel to the independent channel between 2009-15 move to consolidators.
The Social Security and Medicare trust funds will not be able to pay all debts inside of 20 years unless Congress acts, an annual report by the Treasury Department predicted. It means that by 2034, the program will have enough revenue to cover only 77 percent of promised Social Security and Medicare benefits. In the period from 2018-2027, Social Security will…
Mixed Reviews on Wagner Bill to Scrap DOL Rule
A new bill by Rep. Ann Wagner, R-Mo., draws mixed reviews at a House subcommittee hearing today. The bill would scrap the Department of Labor fiduciary rule in favor of a more industry friendly standard.
Trump Can’t Make Regulation Pressure on RIAs Go Away
President Donald J. Trump has vowed to ease or get rid of regulations across the business world. So why are government agencies ramping up investigations of registered investment advisors?
Hispanic Market of Growing Interest to Advisors
Nearly a quarter (24.6 percent) of the U.S. population ages 0 to 17 years old was Hispanic in 2015, an increase from 17.1 percent in 2000, new data finds. This demographic is historically underserved by life insurance.
Health Care Retirement Costs Top $400,000
The annual rate of retirement health care costs is growing (5.47 percent) at double the annual growth rate of Social Security cost-of-living adjustments, a new study finds. What can clients do to prepare?
Annuity Research Tools Helping Agents Comply With DOL Rules
New annuity research tool by Beacon Annuity Solutions will help advisors demonstrate that their recommendations are in the best interest of clients, a company executive says.
