Insights & Perspectives from Howard Diamond

By Howard Diamond - Many tenured advisors possess a similar trait: They view the past through a strong pair of “rose-colored glasses.” When they think about their current firm, or potentially a new one, there is an expression of longing for “what was”—essentially, a place that no longer exists. Storied names of Wall Street past – such as E.F. Hutton, PaineWebber, A.G. Edwards, Advest, Lehman Brothers, Piper Jaffray, and Salomon Brothers, just to name a few – typically elicit nostalgic smiles and reminiscences of “the good old days.” 

By Howard Diamond - Over the past few weeks, rumors have abounded that some wirehouse firms are contemplating an exit from the 13-year old arrangement that protects firms and advisors alike: Membership in the Protocol for Broker Recruiting (“Protocol”). What is the rationale for considering such a move and, more telling, what impact will it have on advisor recruiting?

By Howard Diamond - For IBD advisors who feel they may have outgrown the space, and asking themselves, “Is this still what’s best for my business and clients going forward?” there’s a real case to consider the next stage of independence.

By Howard Diamond - It seems easier than ever to communicate with others: The Internet, smartphones, texting and social media, each at the ready to comment, share and respond. Yet for all of the communicating that we do, real “conversation” seems to be a less frequent occurrence. Pile on the barrage of headlines and rhetoric – especially those we’ve been seeing regarding the elections and the DoL rule – and people tend to react rather than engage with one another. So it was refreshing to attend Schwab IMPACT a few weeks back.

By Howard Diamond - The Broker Disclosure Rule and DOL Fiduciary Rule – coming this November and next April respectively – are perceived by many as game changers in the financial advisory space. Suffice it to say, the educational communication that advisors and firms must disseminate to clients if a move occurs after November 11, 2016 – along with the spate of requirements and regulations that continue to be promulgated in anticipation of the DOL Fiduciary Rule for next year – can be mind-numbing. This is especially so for smaller independent firms or for advisors thinking about moving to an independent model.

By Howard Diamond - When a financial advisor is contemplating a move to a new firm, there are times when questions arise as to whether he should or should not disclose negative events from his past on his Form U4. If there is ever any question about whether a disclosure to a prospective employer should be made, it is almost always better to err on the side of caution and make the disclosure. This is especially important in today’s hyper-vigilant compliance environment.

By Howard Diamond - In today’s M&A rich environment, every advisory firm and financial advisor wants to get in on the action. Unfortunately, though, most would-be buyers and sellers come up empty. Why? Because of unreasonable expectations.

By Howard Diamond - Volatility, according to Merriam-Webster, is defined as something that is “likely to change in a very sudden or extreme way.” That’s certainly an appropriate descriptor for the activity the world stock markets experienced through August and the start of September. With these vast market swings, we have been asked time and again if it has had, or will have, a negative impact on financial advisor movement.