Engaging a securities expert or consultant or PhD who lacks industry experience and formal fiduciary training?  When hands-on experience and training, not just theories count ask the “Fiduciary Expert”

Securities, Hedge Fund, Investment Advisor, Bank, Insurance, Annuities  

Innovative, imaginative industry strategy and insights

 Securities firms, Trust Depts., Stock Broker Fiduciary Duty, Suitability and Supervision

For decades, no matter payment by customer of fees or commissions or both, some customers' accounts require securities broker dealers, special-licensed supervisors and series 7 registered reps to provide a fiduciary standard of care, in addition to suitability.  A compliance Supervisor’s oversight is critical.  Contact by the broker is key, each day risks change, a broker needs to explain initial and changed risks to customers.  Updated suitability and risk tolerance analysis by the broker dealer or adviser involves NYSE rule 405 know your customer (every order, every account) and should document customers’ ability to evaluate same. Absent due diligence, brokerage firms are not required to accept or maintain accounts and can, should and do terminate accounts.

Essential insights and a parsing of the historical and current capabilities, resources, representations and reliance thereon characterizes the unique nature of the customer's relationship to the financial institution and its affiliates, vendors or strategic partners.

Overly risky portfolios due to errors, mistakes and assumptions can lead to faulty  asset alloction optimization, applying risk and return under uncertainty, standard deviation and correlation, a non linear risk; are not uncommon such that an account with several investments may still lack prudent diversfication.  Compare and contrast inputs used in mean variance optimization to resampled efficient optimization and implications for portfolio rebalancing.  Calling into question how asset allocation policy causes or explains actual portfolio performance

See recent press release http://www.prweb.com/releases/2009/06/prweb2564854.htm

Breach of Fiduciary Duty-> Liability -> Damages -> Expert Testimony and Reports 

·          Broker Dealers, Investment Advisers, Consultants, Auditors, etc. - licensed and unlicensed,

·          Trades - best execution, commissions, rebates, order flow, order routing, agency, principal, trade reporting;

·          Products - securities, commodities, futures, options, mutual funds, unit trusts, insurance, annuities, mortgage backed securities, MBS, CDOs, CLOs, CMBS;

·          Services - financial planning, investment consulting, brokerage, prime broker, stock lending, margin accounts;

·          Hedge funds, Private placements;

·          Domicile - US and offshore;

·          ERISA, Custody, soft dollars, master trusts, reporting, regulatory requirements, record keepers, third party administrators; participants’ cummunication materials

·          Insured - FDIC, SIPC, Excess SIPC, Broker dealer self insurance

·          Related areas > Securities, banking, insurance - Compensation, Valuation, Employment - Recruitment, Training, Supervision, Compliance, Wrongful termination, Raiding; Compensation - commissions, overrides, bonus, restricted stock and options - Stock brokers, traders, branch and regional managers, senior management, support personnel. 

Uniform Prudent Investor Act http://www.nccusl.org/Update/uniformact_factsheets/uniformacts-fs-upria.asp  Applies to all trust accounts, since 1996 in California, although certain aspects were already applicable.

Customer’s accounts subject to Fiduciary Duty include but are not limited to:

·          Trusts - life insurance, revocable, irrevocable and charitable, IRA and IRA Rollover accounts (IRA's are individualized, tax advantaged trusts under IRS code section 408.)

·          ERISA Defined Benefit Pension, Defined Contribution, Profit Sharing, 401k & 403b Plans

·          Public Employees Pension benefit and Retirement Plans

·          Union Pension and Retirement Plans, Taft Hartley plans

·          Non profits, Foundations and Endowments

·          Divorces involving the above accounts, a spouse, financial institution party may be responsible for poor performing assets or losses.  See Divorce Fiduciary Audit(TM).

Note: Fiduciary Duty Expert Analysis applies at any time, any type of account, investment or asset subject to fiduciary standard of care; including Real estate, Insurance, copyrights, trademarks, patents, Intellectual property, Family or closely held business, LLPs, LLCs, general or limited partnerships.  See Real Estate Losses page for Investment or Rental property losses.

Litigation@FiduciaryExpert.com or (310) 943 - 6509

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