By Mindy Diamond – So what will become of the restrictions and added bureaucracy that firms enacted as a result of the DoL Rule? Will firms wave a magic wand to reverse their decisions and make the added restrictions disappear? Or will another Fiduciary standard be the new norm?
By Deborah Aronson – Whether you’ve been married to a broker dealer for the past several years and are searching for a new partner, or you’re exploring the independent broker dealer space for the first time, there’s a new set of factors to consider in a post-DOL world.
Mindy Diamond Quoted – By Sarah Martinson, OnWallStreet – Merrill Lynch has landed three multi-billion-dollar teams in the last two weeks. The firm’s latest grab? A $3.3 billion group that left UBS to join Merrill’s Chicago office. Recruiter Mindy Diamond says the string of recent hires is not surprising.
By Mindy Diamond – For a long time now, the big firms have made no secret of their desire to reprice the market relative to recruiting. The DoL Rule gave them just the opportunity to do so, and now 3 of the 4 wirehouses have boldly announced plans to significantly reduce their recruiting efforts—at least for the near term.
By Louis Diamond – Last week we wrote about the economic rationale behind going independent vs. moving to another major firm as an employee. As a follow-up topic, we thought it prudent to analyze transition packages attached to big firm moves and peel back the layers of the onion to show the components of these deals. Our goal is to help answer a burning question for many advisors: “What is the best deal on the Street?”
By Mindy Diamond and Howard Diamond – Even after nearly a week since the election of Donald Trump as our 45th President, we are all still reeling from the shock of what was the culmination of an “interesting” campaign. There are countless questions that a Trump Presidency raises and we are not qualified nor inclined to prognosticate what the future will when it comes to his agenda. However one area in particular falls within our wheelhouse, and that is regulatory reform in the financial services space.
By Mindy Diamond – I am deliberately writing this update to last week’s piece at a time when we have very few answers—especially with respect to the positions that all firms will take as a result of the FAQs the DoL put out on October 27th. My intention is to offer an objective perspective on the impact that this new paradigm – the genesis of which is the DoL’s regulation of our industry – will have on advisors in terms of recruiting and movement, regardless of the position that each firm on the street chooses to adopt.
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.
Mindy Diamond Quoted – By Alex Padalka, Financial Advisor IQ – The SEC has approved a rule from Finra that requires brokers planning to jump ship from their old employer to send “educational communications” to clients that they want to bring along, InvestmentNews writes. The approved regulation follows a three-year development process of the Finra rule, which was originally intended for brokers to disclose their compensation to clients they hoped to transfer when changing firms, according to InvestmentNews.
Mindy Diamond Quoted – By Mark Schoeff Jr., InvestmentNews – The Securities and Exchange Commission has approved a Finra rule designed to encourage investors to ask their brokers about incentives they received to change firms. The compensation rule requires transferring brokers to send an “educational communication” to clients they are trying to convince to make the move with them. That document, written by the Financial Industry Regulatory Authority Inc., will outline things the client should consider, such as whether financial incentives create a conflict of interest for the broker, whether some of their assets can’t follow them and the potential costs involved.
