Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that the Treasury Department has finalized rules requiring most SEC-registered RIAs to implement risk-based Anti-Money Laundering and Countering the Financing of Terrorism programs, including a requirement to report suspicious activity to Treasury’s Financial Crimes Enforcement Network, with firms having until January 1, 2026 to comply with the rule. Notably, while the rule will create an additional compliance burden, the due diligence advisers offering comprehensive planning services (as well as their investment custodians) are likely already conducting on their clients to create an effective financial plan could be a ‘defense mechanism’ for these firms against criminals looking to take advantage of their services.
Also in industry news this week:
- A probe by the Government Accountability Office found that the conflict-of-interest disclosures offered by many firms offering financial advice are often inadequate or confusing, making it hard for consumers to understand whether and when a financial professional is operating in their best interest
- A recent study has found that accountability for business development within a firm as well as its marketing spend can be catalysts for organic growth
From there, we have several articles on tax planning:
- How financial advisors can help clients prepare for the potential sunsetting of key Tax Cuts and Jobs Act (TCJA) measures today, even though their ultimate status likely won’t be determined for many months
- How the state and county where a client lives will help determine the net financial impact they will experience from the potential expiration of major TCJA provisions
- An analysis of the impact of extending provisions in the TCJA that are due to sunset at the end of 2025 shows the various tradeoffs policymakers will face, such as balancing a desire to boost taxpayer income without creating a severe fiscal burden on future generations
We also have a number of articles on practice management:
- 11 factors to consider for RIAs thinking about adding a custodian to their lineup
- Why adding an additional custodian can be a form of “overdiversification” for an RIA
- How taking a strategic approach to asset splitting among custodians can ensure that an RIA receives high-level service without sacrificing business goals
We wrap up with three final articles, all about time management:
- Why aiming to put in “85% effort” can both prevent burnout and lead to time savings without necessarily sacrificing work quality
- How using a “backlog”, combined with “timeboxing”, can help advisors ensure that their most urgent and important tasks are completed efficiently
- Research indicates that time flexibility is a key factor in driving employee job satisfaction, suggesting that firms can promote staff retention by offering flexible work hours, even if employees are expected to be in the office on a daily basis
Enjoy the ‘light’ reading!
