Weekend Reading For Financial Planners (May 28-29)

Weekend Reading For Financial Planners (May 28-29)

Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that an advisory firm owner has filed a lawsuit against his former employer (RIA giant Creative Planning), alleging that the firm coordinated with several of the largest RIA custodians to limit his access to their custodial platforms for his new firm, and that their lucrative retail client referral programs are similarly being coordinated amongst a subset of (primarily large) firms that are willing to put their clients into products that generate the custodians more revenue. While the allegations have yet to be adjudicated (and the defendants vigorously deny the claims), the situation highlights both the often complicated and messy divorces that occur when an advisor leaves to start their own firm, and casts a new light on questions of how RIA custodians actually decide when to allow an advisor breaking away from an RIA to start their own on the platform, and the terms under which firms get access to the custodians’ client referral programs.

Also in industry news this week:

  • Debate is expected to begin soon on a bill that would extend the solvency of the Social Security trust fund by subjecting wages over $400,000 to the payroll tax
  • A recent study shows that while most advisor social media posts are educational or branding-related, the posts that actually generate the most engagement are those in which the advisor takes a personal stance or shares more of their personal lifestyle

From there, we have several articles on the current state of financial markets:

  • The four different types of bear markets and how recessions often drive the length and depth of stock market downturns
  • Why implementing an investment plan can often introduce absolute and relative risks that can draw clients’ attention away from their long-term goals
  • Why putting the current market drawdown into historical perspective can help clients understand that downturns are normal and to be expected

We also have a number of articles on the competition for advisor talent:

  • How Fidelity’s hiring spree reflects a turn toward human-provided advice and could make the hiring environment more challenging for RIAs looking to hire their own talent
  • Ally Invest is the latest brokerage firm to begin offering human-provided advice, bringing in advisors and attracting clients with moderate levels of assets
  • Why advisory firm executives attending the recent DeVoe Elevate conference appeared to be more concerned with simply attracting and retaining talent than striking new deals

We wrap up with three final articles, all about recent changes to the workplace:

  • How companies can generate innovative ideas while working in a virtual environment
  • How firms have changed the design of their conference rooms during the pandemic to create more comfortable and functional spaces
  • How company team retreats have changed during the pandemic and why both in-person and virtual options are viable

Enjoy the ‘light’ reading!

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