Archive for October, 2017

“Sometimes we say it’s the straw that broke the camel’s back”. @HDelux speaks with @BrookeSouthall @RIABiz.

Tuesday, October 31st, 2017

Timing of Morgan Stanley’s Broker Protocol withdrawal sends shocks through the RIA legal and recruiting circles. Today, the news broke belatedly that Morgan Stanley had withdrawn from the Protocol.

“Sometimes we say it’s the straw that broke the camel’s back. I don’t know for sure,” says Brian Hamburger, managing partner of the Hamburger Law Firm LLC, which provided counsel to [Phil] Shaffer in the formation of Columbus, Ohio-based Halite. “But it causes the folks in the C-suite to huddle.”

Read more here.

 

“Sometimes we say it’s the straw that broke the camel’s back”. @HDelux speaks with @BrookeSouthall @RIABiz.

Tuesday, October 31st, 2017

Timing of Morgan Stanley’s Broker Protocol withdrawal sends shocks through the RIA legal and recruiting circles. Today, the news broke belatedly that Morgan Stanley had withdrawn from the Protocol.

“Sometimes we say it’s the straw that broke the camel’s back. I don’t know for sure,” says Brian Hamburger, managing partner of the Hamburger Law Firm LLC, which provided counsel to [Phil] Shaffer in the formation of Columbus, Ohio-based Halite. “But it causes the folks in the C-suite to huddle.”

Read more here.

 

What does the HighTower-PE deal mean for RIAs?, @HDelux articulates distinctions with @paikert @finplan.

Friday, October 27th, 2017

One area of concern, warns Brian Hamburger, CEO of MarketCounsel, the legal and compliance consultancy firm, is the potential conflict of interest if private equity firms view RIAs as distribution channels for other financial products they have interests in.

“Firms have to draw a very bright line when it comes to how a private equity investment impacts investment strategy,” says Hamburger, whose firm has done legal work for HighTower. “If it’s viewed as a new found distribution channel that’s highly problematic and fraught with conflicts. Some firms may take a soft sell approach and have companies they have interests in make calls to each other to discuss the products they sell,” Hamburger adds. “But if they take a harder approach and demand a seat on the investment committee that will clearly be of interest to regulators as they investigate the wave of new investments in this industry.”

Read more here.

Advisors Go Prospecting On Social Media, @JulietteFairley @FAmagazine features @ZacharyFurnald.

Wednesday, October 25th, 2017

“To the extent a financial advisor is posting information regarding their firm’s investment advisory business to the public, it’s likely to be deemed an advertisement of the firm subject to the advertising rule,” said Zach Furnald, an attorney in the regulatory division of MarketCounsel, a financial services compliance consultant in New Jersey. When asked about how advisors should handle revenue earned through a prospecting app, Furnald further stated, “It would be a matter of disclosing the fact that the initial consultation fee varies, describing the consulting services the advisor is providing, what the service entails and whether the fee being charged is fixed, negotiated or based on the platform.”

Read more here.

RIAs Face New Custody Risks and Reporting, so @danbernstein talks with @dvjamieson @FAmagazine.

Thursday, October 19th, 2017

Beginning this month, advisory firms preparing their annual ADV updates will have to calculate and report assets held in accounts that have a standing letter of authorization to move money or pay bills to third parties. Dan Bernstein, chief regulatory counsel at MarketCounsel, thinks the biggest change for advisors will be the reporting requirement.  “Advisors do not want to have custody,” he said, and the new guidance might force them to report some “big numbers” for assets under their control, which could spark questions from clients.

Read more.

MarketCounsel: ‘Humbled to Receive its Second WealthManagement.com Industry Award for Its RIA Incubator™’

Wednesday, October 18th, 2017

Read the press release here.

“Whatever you do, don’t call them brokers.” @Think_MelanieW @ThinkAdvisor highlights @HDelux

Tuesday, October 3rd, 2017

As Brian Hamburger, CEO of regulatory consulting firm MarketCounsel, noted on the recent webcast, in 1999 — under what is commonly referred to as the broker-dealer exemption — the SEC said that brokers’ fee-based advice “did not have to include a fiduciary responsibility as long as the broker wasn’t making the final investment decision,” sparking a proliferation in the early 2000s of fee-based brokerage accounts.  Brokerage firms then started to “dress up” as independent advisors and started to “rebrand” the broker role — with firms applying different titles to registered reps like financial consultant, financial representative and wealth manager — with the message from the firms being: “‘Whatever you do, don’t call them brokers.’”

Read more here.