Fiduciary Links: Best Execution Duties Best Not Be Overlooked
Posted by fi360 Team on September 03, 2013
>>>>In his latest Fiduciary Corner column for Investment News, Blaine Aikin looks at a recent SEC administrative proceeding regarding an adviser’s best execution obligation. In the case, the adviser disclosed that most transactions would be executed through the company’s own broker-dealer and that their analysis concluded that this arrangement was beneficial to the client. The SEC, however, found discrepancies between the competitive analysis described in the firm’s Form ADV and the processes the adviser was actually employing. Eventually, the firm settled, agreeing to pay back excessive costs to clients and make a number of procedural and personnel changes to prevent future compliance violations.
This case demonstrates that even the simpler parts of fiduciary responsibility must be managed responsibly or there can be significant ramifications. For more information, see the blog post by Duane Thompson from last month in which he looked at this and one other best execution-related case in greater detail.
Now on to the best links of the week:
News and columns from the leading trade, consumer, and mainstream media:
- Alternatives still a good idea for diversification, but don't forget due diligence [InvestmentNews]
- New federal guidelines on benefits for same-sex couples means advisors may need to revisit estate planning decisions [InvestmentNews]
- Advisor confidence rises, as does taste for risk. [Financial Planning]
- For retirement, protect clients from themselves. [Financial Planning]
- A lesson from the royals: succession is a two-way street. [Wealth Management]
- Financial Advisers shift strategy to serve older clients. [Wealth Management]
From the organizations/associations/government/academia:
- Business continuity planning helps ensure fiduciary duties met [SEC, coverage via InvestmentNews]
- Agencies request comment on proposed risk retention rule [SEC]
- Automation and Education equals success. [NAPANet]
From the blogs:
- Trending topics for ERISA plan sponsors. [Fiduciary News]
- Social Security: an indepth look at Social Security benefits. [All Things Financial Planning]
- How 10 articles in August define what RIAs care about. [RIABiz]
- What is risk tolerance? [Getting Your Financial Ducks In a Row]
- Ten tips for a smart website. [Practice Management Center]
Articles your clients are reading (or should be):
- Four ways to make your 401(k) work as hard as you do. [The Chicago Financial Planner]
- Be leery of these financial products [US News]
- Three highly personal threats to your retirement. [US News]
Have a link we missed? Leave them in the comments section or email us at blog@fi360.com. For more of the best links during the week, make sure you follow us on Twitter.
