Worst of both worlds looms for RIAs in Washington
Act would gut the authority of SEC over RIAs while doubling its budget
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Charles 'Chuck Schwab' called James Gorman to protest a two-broker poach, kicking off a hydra-headed legal battle, costing Morgan Stanley millions, so far
The Schwab founder and chairman invoked Charles Schwab Corp.'s zero-tolerance policy against Wall Street -- or RIA -- poaching of talent and AUM from Schwab branches.
March 9, 2023 at 1:23 AM
Why FINRA's late appearance into smoothie-throwing broker James Iannazzo's life might be rough
It's been about 11 months since Merrill Lynch fired him, and the CFP Board stripped him of the CFP mark; attracting the SRO's attention means more woes.
December 29, 2022 at 1:05 AM
Biz Briefs: SEC cracks down anew on RIA reverse churning ~ Envestnet borrows $350 million to buy its own stock ~ Fidelity is creating a crypto waiting list while exec questions crypto ecosystem
Fed up SEC is ready to take on all nonsense at once; stock shocks, Orwell's new name game; Fidelity hosts a line dance
November 18, 2022 at 2:56 AM
Investment Adviser Association
Asset Manager for RIAs
Top Executive: David G. Tittsworth
Stephen Winks
Given the Supreme Courts surprising lack of discernment between the fiduciary duties of a broker and advisor, and FINRA’s historic inability to foster support for fiduciary standing from its broker/dealer regulatory constituency, you have got to conclude fiduciary standing is not something that can be achieved through regulatory mandate. If it were it would now be within the reach of every broker and every advisor. Thus, isn’t it up to the free market to create the enabling resources necessary to safely bring easily executed fiduciary counsel within the reach of all.
If so, who cares what FINRA does, the brokerage industry will still not support fiduciary standing. It is really up to enterprising firms to advance the necessary enabling resources in support of the fiduciary standing of its advisors. With out these enabling resources, fiduciary standing is an abstract idea for every broker in the business and they have every right to be skeptical. But once fiduciary standing is brought within the reach of every advisor, it becomes a strategic imperative.
Every consumer wants their advisor to be accountable, full transparency, superior performance and a faster, better and cheaper fiduciary alternative in their best interests. It is just not possible in a brokerage format which charges for advice and treats trade execution as a profit center, which marks up principle trades in advisory accounts, uses veery expensive packaged products in portfolio construction and ignors conflicts of interests which preclude fiduciary standing.
So, let’s not worry about what we can’t control and strive to achieve what we can control. Simply put, the industry is about to be reordered around advisory services and fiduciary standing necessary to restore the faith and confidence of the investing public. This outdates everything that has come before it. The missing ingredient is vision, courage and know how which translates into a new generation of market leadership. This is not FINRA or the SEC, it is entrepreneurial. It is not a custodian or broker/dealer. It is an advisory services firm which is probably being formulated as we speak by those who care about the advisor, their role and counsel. Let’s focus on the solution rather than lament on what has or hasn’t occurred. Stay positive and focused.
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