By Deborah Aronson – In an industry where firms are offering transition packages at high water mark levels, it’s easy for advisors to get caught up in the economics surrounding a potential move. While a transition package may be among the top things on an advisor’s mind when contemplating a move, bringing up economics on a first meeting is often considered taboo—especially with the new Broker Disclosure Rule on our heels.
By Mindy Diamond – As of November 11 of this year, the long expected SEC approved FINRA Rule 2273 (Educational Communication Related to Recruitment Practices and Account Transfers) will take effect. This pronouncement will make it mandatory for an advisor who changes firms to explain to his clients the benefits they would experience in transferring their assets to the new firm, as well as the possible negatives, including “direct costs that might be incurred”.
By Mindy Diamond – You know the feeling: a local weather forecaster advises us that a disturbance is forming off the coast. Looking at several different weather models, they only know one thing for certain: the storm will hit, but we’re not exactly sure when or how strong it will be. Of course, we all react and rightfully so, as we need to protect what’s ours. We’re anxious, unsure of what’s to come, leaving many worried about their future.
Mindy Diamond Quoted – By Mason Braswell, InvestmentNews – Finra has withdrawn a controversial proposal that would have required brokers to tell clients about recruitment incentives they receive in excess of $100,000. Industry recruiter Mindy Diamond of Diamond Consultants said that the proposal would likely have been a “non-issue” as advisers would have been able to find ways of disclosing the information to clients without disrupting their transition.
By Mindy Diamond, WealthManagement.com – Next week, the board of the Financial Industry Regulatory Authority (FINRA) plans to review a controversial proposal that, simply put, would require brokers to disclose the incentive they receive when switching firms (if the incentive totals more than $50,000). While this topic has been bumped from FINRA’s agenda in the past, I believe that a ruling is imminent and will eventually pass. If it does, it could have far-reaching implications for all advisors who change firms in the next several years and beyond.
