Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that amidst the impending return of Donald Trump to the White House, observers expect a lighter-touch regulatory environment for RIAs (and the financial services industry as a whole), with many regulations proposed (but not yet implemented) under SEC Chair Gary Gensler (e.g., strengthened rules related to custody and outsourcing) and broader regulatory efforts put forth by the Biden administration that could also affect advisory firms (e.g., the Department of Labor’s Retirement Security Rule and the Federal Trade Commission’s ban on most non-compete agreements, both of which are currently blocked by courts) likely to be tabled under the new administration. Which could ease the compliance burdens for RIAs (particularly smaller firms that are sometimes stretched thin handling compliance responsibilities), though if lighter-touch regulation leads to more abuses that erode consumer trust in the financial advice industry, fiduciary advisors could have a harder time convincing clients that they truly are acting in their best interests and differentiating from product salespeople who continue to use the “financial advisor” title.
Also in industry news this week:
- A study suggests that engaging in a collaborative planning process with clients not only can boost client engagement but also lead to more client referrals as well
- A survey of compliance professionals indicates that while many have tried using artificial intelligence tools to boost efficiency in their compliance programs, most have yet to experience significant benefits
From there, we have several articles on client communication:
- A recent study identified significant gaps between the retirement planning topics advisors recall talking about with their clients and those that clients remember discussing, suggesting that advisors could consider ways to create better client engagement so that they absorb key messages and recognize the value their advisor is providing
- How advisors can make prospects and clients feel ‘smarter’ by better understanding their financial knowledge and learning style preferences
- While many financial planning goals are meant for the long term, advisors can provide value and build loyalty among clients by engaging in regular communication (both synchronous and asynchronous) to help them prepare for and overcome inevitable bumps along the way
We also have a number of articles on Long-Term Care (LTC) insurance:
- With some LTC policyholders facing proposed premium hikes of more than 100% in the next year, advisors have a valuable role to play in helping them evaluate their options
- A study suggests that LTC policyholders are more likely to accept premium increases when their options are made clear to them and they feel more confident in their decision, suggesting a potential educational role for advisors helping clients facing premium increases
- The potential perils of fully self-funding potential LTC needs and why a “50/50” approach might be appropriate
We wrap up with 3 final articles, all about Artificial Intelligence (AI) and everyday life:
- A new AI-powered tool allows users to generate their own custom (and entertaining) podcast on any topic
- Why a shift toward relying on generative AI tools to write could lead to a decline in both writing and critical thinking skills
- While AI-powered search tools provide convenient summaries to user queries, they could ultimately impede the ability of users to discover new content (and disincentivize content creators, including financial advisors, to produce it in the first place)
Enjoy the ‘light’ reading!
