MetLife's successful court challenge reversing its designation as a systemically important financial institution probably won't seriously undercut the authority of the Financial Stability Oversight Council, Bora Yagiz writes. "[I]t probably will have to become more transparent, revamping its designation process and its risk assessments by providing better guidance and clarity for the former and keener analysis for the latter," he writes.
FSI sees five indicators of corporate culture that the Financial Industry Regulatory Authority is focused on enforcing: whether control functions are appropriately valued within organizations; whether policy or control breaches are tolerated; whether organizations proactively look to identify risk and compliance events; whether immediate managers are effective role models of culture; and whether subcultures that might not conform to overall culture are identified and addressed.
Among Gen Xers, 41% say they are not very knowledgeable or not at all knowledgeable about investing, while 56% have less than $100,000 saved for retirement, according to an industry survey. But this age group has time to develop a retirement-savings plan and should look for fee-only advisors to guide investment, experts say.
Context and personal stories are missing from most advisors' conversations with clients, says Timothy Horsburgh, an investment strategist at OppenheimerFunds. Telling a story helps clients manage not only assets but also emotions, he says.
The improving stock market has led baby boomers to worry less about having enough savings to retire and worry instead about outliving their funds, says Chip Roame, managing partner at Tiburon Strategic Advisors. But the focus could go back to the ability to retire at all, he said. "They didn't actually do anything to save more," Roame pointed out. "They're simply riding the market."
Branding is a way for advisers to help clients feel comfortable with them and understand the value they provide, says Kate Healy, managing director for TD Ameritrade Institutional. She offers six questions to ask oneself to begin the branding process, including "Who are you?" and "Why are you the best choice?"
The Labor Department's fiduciary rule could lead many firms to adopt a fiduciary approach to all accounts to simplify compliance, FPA Chairman Ed Gjertsen says. In addition, more consumers have become aware of the issue and might ask their advisers questions about their fiduciary duties outside of individual retirement accounts, FPA President Pamela Sandy notes.
Black advisers often encounter biases from prospects, says Tony Barrett, a co-founder of the Raymond James Black Financial Advisors Network. To overcome them, he works to perfect presentations and spends time looking for commonalities with prospects. Another strategy is to find advocates. "You have to go to people who know you and trust you, and ask them to introduce you to people who will give you a shot," Barrett said.
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