When 27 years of hands-on experience and formal fiduciary training, not just academic theories count, ask the “Fiduciary Expert”
Securities, Hedge Fund, Investment Advisor, Bank, Insurance, Annuities
Incandescent Financial Services & Securities industry strategy and insights
From the 1980's to today - from account solicitation, products, trades, compensation, sources of profits. Perspectives from headquarters level, regional to branch office to brokers' desk. Information advantages, skills, capabilities, technology, industry and public-facing advertisements, representations and reliance thereon characterize a customer's unique relationship not just to the adviser, but the body of the financial institution, affiliates, regulators, insurors, vendors or strategic partners.
Securities, Bank Trust Depts., Brokers, Fiduciary Duty, Suitability, Supervision
For decades, no matter payment by customer of fees or commissions or both, some 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 such due diligence, brokerage firms are not required to accept or carry and can, should and do terminate accounts.
Before investing, did the financial adviser explain the risks or historical correlation analysis? Perform an attribution analysis dissecting the strategy's past performance?
Breach of fiduciary duty and damages can result from failure to understand future needs for cash, asset liability match and implement a prudent asset allocation. Some advisers fail to stay on top of how models' original imputs like risk, return, standard deviation and correlation actually perform in the market. Such that accounts with many investments may still lack diversification. Mean variance optimization or resampled efficient optimization may not be understood. In fiduciary litigation, it's helpful that decisions by trustees and co-fiduciaries are deliberate, not left to chance or inattention.
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, Charities, Foundations and Endowments
HOAs, Custodial, Minors, Guardian and Conservatorship accounts
· Divorces involving the above accounts, a spouse, financial institution 3rd 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.
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