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Can AUM-Based Advisors Be True Fiduciaries? During a recent Inside Wealth panel, advisor Rick Ferri argued that AUM-based advisors aren t incentivized to put clients first, while attorney Max Schatzow stressed advisor compensation for value isn t easily quantified. Either way, advisors should expect more client scrutiny over the price of advice.
Financial advisors who charge clients a percentage of assets under management are too often susceptble to conflicts of interest between their business model and what s best for their clients, argued Rick Ferri, an investment analyst and founder of Ferri Investment Solutions.
For services other than portfolio management, an AUM-based fee can be incompatible with being a true fiduciary, Ferri argued during a panel discussion at this week’s Inside Wealth Virtual Conference.
The SEC s Ad Rule: New Strategies, New Risks Advisors will have to take the good with the bad when it comes to using client testimonials but they can be strategic.
The May 4 implementation of the SEC’s so-called Ad Rule will give financial advisors new marketing options with the ability to solicit client reviews and recommendations and direct prospects to them.
While negative reviews from disgruntled clients on sites like Yelp, Google and Angi (formerly Angie’s List), have been the bane of advisors for years, they’ve been easy to ignore. Now, advisors’ ability to solicit positive testimonials for those sites and link to them in their marketing plans may bring added concern about complaints left there by disgruntled ex-clients.
SEC Ad Rule To Take Effect in May After some doubt, the SEC s final rule allowing client testimonials will go into effect May 4. I’m sure there’ll be people who want to press it and hit the gas pedal.
The SEC’s rule on marketing and advertising will officially go into effect on May 4, after
being published in the Federal Register Friday morning. The publication of the new rule governing how and when advisors can use testimonials and endorsements in advertising comes more than two months after the
The rule updates were intended to modernize “traditional advertising and solicitation regimes, which have not been amended for decades,” despite advances in fintech and financial markets, according to former Chair Jay Clayton, who announced the finalized changes on Dec. 22 of last year.
DOL Fiduciary Rule’s Impact Will Be Felt by Advisors, Brokers The Biden administration announced last week the fiduciary exemption would take effect as scheduled, but legal experts argue the rule has some serious teeth that will impact client relationships with advisors and broker/dealers.
As the Department of Labor said Friday that the fiduciary exemption finalized in the waning weeks of the Trump administration would go into effect Tuesday, Feb. 16, as scheduled, it also indicated that the department would release “related guidance” in the days ahead for investors, plans and providers alike. This has left industry participants and experts looking ahead to what form this guidance may take.