Louis Diamond Quoted – By Michael Thrasher, WealthManagement.com – In wake of U.S. courts axing the Department of Labor’s retirement savings rule, Merrill Lynch told its field of more than 14,000 financial advisors on Friday that the brokerage is reevaluating its policies and procedures, especially those related to retirement accounts.
Louis Diamond Quoted – By Tobias Salinger, OnWallStreet – Broker-dealers have seen the writing on the wall — adapt to the changing industry or risk extinction, according to a new report from Cerulli Associates. The fiduciary status of RIAs does leave them in a stronger position than IBDs with prospective clients, according to recruiter Louis Diamond of Diamond Consultants. He views the fiduciary rule as the primary concern facing IBDs due to its direct impact on longtime revenue sources like 12b-1 fees.
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 Mindy Diamond – Advisors have long held on to the certainty that when, and if, they were ready to change jerseys, they could do so and be paid the record-level deals that exist today. Everyone thought that we recruiters were crying wolf when we said, year after year, that at some point the gravy train would end and if you had a move in you, we strongly suggested making it sooner rather than later. While some advisors heeded our warnings, most believed that the rivers of wealth would never dry and that deals would just keep rising.
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.
Louis Diamond Quoted – By Tariro Mzezewa, Reuters – Wealth managers in the United States are cutting fees, relying more on technology to give advice and reducing the minimum amounts clients can hold in their brokerage accounts, all in preparation a new rule governing how they advise retirement savers.
Mindy Diamond Quoted – By Megan Leonhardt, WealthManagement.com – What value will independent broker/dealers be able to offer their advisors in a post-Department of Labor fiduciary world? Independent broker/dealers have been facing increasing pressure with fee compression on the rise and advisors increasingly expecting more and better services. But the difficulty in retaining advisors is only going to increase with the implementation of the Department of Labor’s fiduciary rule.
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