Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that the U.S. Supreme Court heard arguments this week in the case of SEC v. Jarkesy, which in a narrow sense focuses on the SEC’s use of in-house Administrative Law Judges to hear securities law cases rather than traditional Federal jury trials, but in a broader sense could call into question the SEC’s (and other government agencies’) authority to make rules and enforce laws in the absence of specific guidance from Congress in how to do so, making it of great significance for financial advisors regulated by the SEC.
Also in industry news this week:
- As part of its proposed (revised) fiduciary rule, the Department of Labor is seeking comment on whether professionals using titles like “financial planner” and “wealth manager” are considered to hold themselves out in a position of trust and confidence (and therefore ought to be automatically treated as an ERISA fiduciary for the purposes of retirement investing advice)
- A new study from Advisor360 finds that the majority of “next generation” advisors welcome the use of AI tools for communicating and collaborating with clients, but firm restrictions and regulatory concerns are holding many of them back from using AI in practice
From there, we have several articles on practice management:
- Although advisor benchmarking studies are common ways to gauge advisory firm performance, the answer to whether a firm is truly successful lies in how it is meeting the goals set by the firm’s own leaders
- Newer advisors who find their careers (and compensation) stagnating at the firm that initially hired them are increasingly leaving to seek better opportunities, putting pressure on firms to offer higher pay and a clear path for career advancement
- When an advisor moves from one RIA to another, a non-compete or non-solicit agreement can make it difficult to rebuild the advisor’s business; however, there may be ways to settle between old and new firms in a way that keeps everyone happy
We also have a number of articles on money and family relationships:
- Why many couples’ arguments about money often stem from far deeper disagreements (and what advisors can do when they get caught in the middle of arguments that go beyond money)
- Although talking to family members about wealth and estate planning can help ensure one’s wishes are carried out after they are gone, some people end up regretting the conversation if it’s spontaneous and unplanned – making a more structured and intentional conversation (or series of conversations) a better way to communicate the meaning and purpose of family wealth
- Data show that the majority of heterosexual couples in the top 1% of net worth have the husband as the sole breadwinner (with the wife not earning any income), echoing a power imbalance between men and women both at home and in the workplace
We wrap up with 3 final articles, all about financial wisdom:
- Why people are so driven by desire for the things they can’t have (and why that isn’t always a bad thing)
- The lessons that real estate investor Sam Zell, who passed away in May, can teach about spotting opportunities and managing risk
- A reminiscence on the legacy and wisdom of Berkshire Hathaway vice-chair Charlie Munger, who also passed away this week
Enjoy the ‘light’ reading!
