Weekend Reading for Financial Planners (Feb 12-13)

Weekend Reading for Financial Planners (Feb 12-13)

Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that the Financial Planning Association, under new Executive leadership and a renewed Board focus, is now explicitly stating that its ‘core member’ will be a CFP professional. In addition, leaders of the organization reiterated the importance of the FPA’s local chapters, which had come under threat in a proposed 2018 restructuring plan. Together, these measures signal a return to the organization’s roots as a ‘home’ for CFP professionals with strong local chapters, as the beleaguered membership association tries to reignite its growth against a backdrop of strong and steady growth of CFP professionals themselves.

Also in industry news this week:

  • The SEC has proposed a new rule that, if it comes to pass, would require investment advisers to significantly beef up their cybersecurity planning and reporting
  • More than a year after Regulation Best Interest was implemented, a FINRA report has found that many broker-dealers are failing to live up to many of its requirements designed to protect consumers

From there, we have several articles on broker-dealers:

  • How FINRA will start to identify “high-risk” broker-dealers under its new Rule 4111 after June 1, 2022, providing the first significant test of whether it will truly incentivize firms to rid themselves of their problem brokers
  • How major independent broker-dealers like LPL Financial and Commonwealth Financial Network have changed their recruiting incentives to align with the industry’s broader shift to advisory services over product sales (by providing forgivable loans based on AUM, not the advisor’s trailing-12 GDC)
  • How the headline payout rate offered by many independent broker-dealers often obscures hidden costs paid by both advisors and clients, and can frustrate advisors who want to offer more fee transparency and keep a higher percentage of the revenue they earn

We also have a number of articles on investing:

  • Why investors are pouring money into ultra-short-duration bond funds in anticipation of the Federal Reserve’s expected interest rate hike
  • How ETFs in model portfolios that are affiliated with the model portfolio provider themselves are likely to have higher fees and lower performance than those that are not similarly conflicted
  • How Legos as an asset class outperformed the S&P 500 over a nearly 30-year period (at least for those who managed to hold on to their original, unopened sets!)

We wrap up with three final articles, all about attracting and retaining talent:

  • How the current tight labor market has led to a ‘Great Upgrade’ in which many employees are leaving their current jobs… for new ones that offer better pay and work-life balance
  • Why the recipe for happiness on the job goes beyond quantitative measures such as compensation and into qualitative aspects, including a feeling of earned success and being able to serve others
  • How to identify the ‘Non-Fungible People’ in a company, and why these employees are the most important to retain

Enjoy the ‘light’ reading!

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