More On Legal & Compliancefrom The Advisor's Professional Library
- Agency and Principal Transactions In passing Section 206(3) of the Investment Advisers Act, Congress recognized that principal and agency transactions can be harmful to clients. Such transactions create the opportunity for RIAs to engage in self-dealing.
- Preventing and Dealing with Client Complaints Although the SEC has not provided specific guidance on how client complaints should be handled, a firms policies and procedures should provide clear direction how to do so, as neglecting complaints can exacerbate a bad situation.
Charles Ellis, the best-selling author, consultant and Ivy League professor who founded Greenwich Associates, has some simple advice for advisors who want to grow strong firms that should be obvious but frequently isn’t: Be a good leader and serve your mission well.
Might sound easier said than done, but Ellis explains how to put that into action in this month’s cover story.
Mark Tibergien uncovers a serious issue that could knock the wind out of a firm that isn’t paying attention: wire fraud. It’s a big problem and one advisors need to take seriously. Tibergien, with comments from resident compliance expert Tom Giachetti, explains how advisors can protect themselves.
For our Overlooked Managers feature, we talked to Pioneer Investment’s Charles Melchreit about growth in the ultra-short fund space. Investors have shied away from it since 2008, but now the space is turning around.
We also present the final installment of the 2012 Growth by Design series from FA Insight. What do firms need to grow at each stage of their life cycle? Eliza De Pardo and Dan Inveen explain.
A word of advice if you ever plan on speaking professionally with Charles Ellis: Be prepared.
The best-selling author, consultant and Ivy League professor swatted away a number of our carefully crafted questions, and it was only after his explanation of why that we understood our mistaken premise. Ellis (who goes by Charley) had something to say and, alternating between genial and intense, he was going to say it. It was a refreshing change from so many interview subjects who fear to contradict in the belief it will make them “look good” in the eyes of the interviewer, and by extension, the reader.
Ellis spoke with Editor-in-Chief John Sullivan to explain what it takes for advisory firms to be great.
Advisors often mistakenly believe that their broker-dealer or custodian is responsible for preventing fraud. While such firms play a role, providing surveillance and tripwires that stymie illegal transactions, the ultimate responsibility lies with advisors, particularly those serving in a fiduciary capacity.
Mark Tibergien explains why it's so important for advisors to take responsibility for preventing fraud and shares some examples of ways fraudsters might try to compromise advisors’ practices.
It’s been a tough road in the ultra-short mutual fund space. The category blew up in 2008 along with everything else, and yields proved little better than money market funds in the recovery that followed. However, modest inflows since the beginning of the recovery are bringing life back to the space. Editor-in-Chief John Sullivan spoke with Pioneer Investments’ Charles Melchreit to learn why investors have no need to fear the ultra-short space.
In the final installment of the 2012 Growth by Design series, Eliza De Pardo and Dan Inveen compare a firm’s growth needs to vitamins: “As the years progress, so do our dietary needs—Flintstones vitamins make way for Centrum Silver.”
The authors break down data from the annual FA Insight study to show what vitamins a firm needs at each stage.