The financial-services industry is waiting to see how the new head of the Securities and Exchange Commission's Enforcement Division, Gurbir Grewal, will interpret
Regulation Best Interest and calling for clear guidelines. "If the SEC's interpretation of Reg BI evolves as they go through their examination process, we would expect them to provide appropriate guidance or exam findings reports to the industry as opposed to widespread enforcement actions," said Robin Traxler, a senior vice president and deputy general counsel with the Financial Services Institute.
Blaine Aikin, founder and principal of Broadridge's Fiduciary Insights, says the financial-services industry is looking to Securities and Exchange Commission Chair Gary Gensler to offer a clear definition of "best interest." Such a definition was not included when the SEC launched its Regulation Best Interest in 2019, Aikin says.
Firms should take real steps to help lessen racial disparities, financial planner and diversity consultant Lazetta Rainey Braxton said at the Financial Services Institute's OneVoice conference, suggesting that companies participate in minority-led conferences and improve their hiring practices. FSI created a task force last summer with the goal of increasing the number of minority and women advisors and executives.
Financial advisors can use clients' biases to reframe how they view retirement investing, says Jonathan Young of Capital Group. Young highlights three biases -- present bias, procrastination bias and compounding blindness bias -- and shows how advisors can present information differently to overcome them.
Nontraded REITs raised $3.5 billion last month, setting another monthly record, according to Robert A. Stanger & Co. Stanger expects retail alternative investments to bring in $60 billion this year, with nontraded REITs accounting for half that amount.
Construction has begun on an industrial park in East Windsor Township, N.J., with the project coming from a fund managed by Black Creek Group. The park has one building that spans 407,000 square feet and another that spans 168,000 square feet.
Benefit Street Partners Realty Trust has agreed to merge with Capstead Mortgage to form Franklin BSP Realty Trust. The merger will create the fourth-biggest commercial mortgage REIT and an entity with pro forma equity worth almost $2 billion.
The Financial Services Institute's advocacy efforts are heavily focused on preserving advisors' independent contractor status, said FSI Vice President and General Counsel David Bellaire at the group's OneVoice conference. "There's still an awful lot of work to do on this [independent contractor] issue, but I'd say that our team is cautiously optimistic," Bellaire said.
Financial criminals are increasingly trying to cheat consumers by pretending to be legitimate financial advisors and brokers, the FBI and Securities and Exchange Commission warn. The scammers' techniques include falsifying documents, cold calling using technology that makes it look like they are calling from legitimate firms, and creating fake websites and social media profiles.
The ways advisors have adapted their businesses during the pandemic in order to survive have made lasting marks on the financial-advice industry, panelists said Tuesday at the Financial Services Institute's OneVoice conference. For example, the shift to remote working and virtual meetings freed up time for advisors and encouraged more seamless integration of technology, panelists said.
- Page 1