Is an Annuity Tax-Break Just what Retirees (and the Annuity Market) Need? 

Nov 8, 2006,

By John Churchill

With the first wave of boomers starting to spend down that nest egg, one recent academic study suggests the government should create incentives for boomers to spend it as carefully as they saved it—by offering tax-breaks and/or credits on income from annuities. Besides helping retirees stretch their assets to last throughout retirement, it could improve competition and pricing in the annuity industry, and could even boost gross domestic product, the study contends....

NASD Whacks Two Firms with Fines Over Ill-Advised 529 Sales 

Nov 7, 2006,

By Kevin Burke

The NASD said on Monday that it has fined two brokerage firms—Chase Investment Services and MetLife Securities—for failing to establish internal controls to supervise the sale of 529 college savings plans. The two firms were fined $500,000 apiece and ordered to reimburse customers who were affected by their supervisory failures. ...

Schwab Postpones Biz Update, Sparks Merger Chatter 

Nov 6, 2006,

By Kevin Burke

In a rare move, Charles Schwab said on Friday that it has postponed its fall business update with analysts, citing “scheduling difficulties.” A company official confirmed that the biannual meeting—originally set for Nov. 16—had been postponed and no new date set. This is only the second time that a meeting of this caliber has been postponed. Its June 2005 analyst confab was also postponed....

Morgan Tinkers with Grid; Wants FAs to Aim High 

Nov 3, 2006,

By Kristen French

In a broadcast Thursday afternoon to the firm’s U.S. financial advisors, retail head James Gorman announced the rollout of a new compensation program for 2007—one that will increase the firm’s spending on compensation by tens of millions of dollars. But, in an effort to get reps to think big, accounts below $50,000 will no longer generate any compensation for the rep (unless they are in certain favored accounts)....

Money Managers Don’t Get RIA Market  

Nov 1, 2006,

By Kevin Burke

A large number of money managers still haven’t figured out how to tap the registered investment advisor (RIA) market to sell their funds, according to research published Monday by Kasina, a mutual fund consulting firm in New York....

Brokers Happy But Envious 

Nov 1, 2006,

By Halah Touryalai

Brokers generally like their jobs, but seem to have channel-envy. At least that’s what Fidelity unit National Financial found in its survey of brokers conducted this summer....

NASD Fines B/D for Account Transfer Charges 

Oct 26, 2006,

By Kevin Burke

On Thursday, the NASD slapped a small independent broker/dealer with a $50,000 fine and sanctions for overcharging more than 1,500 customers who decided to follow their brokers to another firm...

Another One Bites the Dust: Broker Fined Record Amount for Market-Timing Scheme 

Oct 25, 2006,

By Halah Touryalai

The NASD today made a statement: Brokers who try to game the system will be severely smote. Today the NASD fined Paul Saunders, a registered rep, CEO and majority owner of James River Capital Corporation (JRCC) in Richmond, Va., $2.25 million. That sum represents the largest fine against an individual for marketing timing, including disgorgement of about $750,000 in illegal profits....

Fiduciary Flap Trips Up CFP Board 

Oct 25, 2006,

By John Churchill and Kristen French

The rift in the investment-advisor industry came into sharp focus Tuesday, when the CFP Board announced that it has put off making proposed changes to its Code of Ethics until January 2007 in order to consider the heated reactions of industry members. The flap over the board’s Code of Ethics has been ongoing since the proposed changes were announced in late July. But, really, this is just the latest scuffle in an ongoing battle over the differing legal responsibilities that investment-advisor reps and registered reps have to clients—in other words, over the broker/dealer exemption (a.k.a. the Merrill Lynch rule) and the term fiduciary....

Opulence (and a Wee Bit of Strife) at FPA Confab in Nashville 

Oct 23, 2006,

By John Churchill

Education and networking were on order at the annual Financial Planning Association conference in Nashville, Tenn., this weekend. But inside the garish, biosphere-like Gaylord Opryland Resort and Convention Center outside Nashville, larger philosophical issues loomed....

Retail Brokerage Has Strong Third Quarter 

Oct 17, 2006,

By Kristen French

The third quarter shaped up pretty well for the retail brokerage divisions of the big Wall Street firms. Despite a continued rough market environment in June through August—with gains of just 1 percent on the S&P 500 and the Dow Jones Industrial Average, and a 2 percent loss on the NASDAQ—the retail client didn’t take his money and run....

Divorce Is For Advisors 

Oct 11, 2006,

By David Geracioti

In our litigious times, prenuptial agreements are becoming "wackier" and more prolific than ever. Some husbands, according to a survey by the American Academy of Matrimonial Lawyers and described by the New York Post, are even spelling out "how much sex they want and how much weight their wives are allowed to gain . . .." Of course, lawyers say good luck enforcing some of these stranger prenups....

Gaps in Philanthropic Services to Wealthy Are Opportunities for Advisors 

Oct 10, 2006,

By John Churchill

Ever since Warren Buffett announced his intention to give away a massive chunk of his fortune in June, advisors say they have noticed an increased enthusiasm for philanthropy among wealthy investors. But that enthusiasm may not be finding adequate outlets. A new survey of the wealthy finds that the first links in the giving chain—financial advisors and nonprofit organizations—don’t communicate effectively with potential philanthropist clients....

Citigroup Wins Long, Strange CAP Battle 

Oct 4, 2006,

By John Churchill

Another assault on deferred compensation fails. After going two for three in a unique tug of war involving both the arbitration and court systems, former Smith Barney broker James McCarthy is likely throwing in the towel in three-year fight for money left in his deferred-compensation plan....

How the Pension Bill Will “Kick-Start” 529 Sales 

Oct 3, 2006,

By Kristen French

For most financial advisors, the 529 College Savings has never been an easy sell or a big moneymaker. But, in the past six weeks, Bradley Pace, president of Pace Capital Management, says he’s had about 70 potential clients fill out applications for 529 plans following his seminars. “That’s more than I typically do in a year,” he says. He has also opened new 529 plans for his two daughters, he says....

Merrill Hands Over Mutual Fund Reins to BlackRock 

Oct 2, 2006,

By Kevin Burke

The biggest asset-management deal in history officially closed today. BlackRock, the nation’s third-largest bond fund manager, said it has completed its takeover of the asset-management arm of Merrill Lynch; the union is one of the world’s largest asset managers—and the largest publicly traded asset manager on the New York Stock Exchange—with nearly $1.1 trillion in assets....

Merrill Appoints New Board Members 

Oct 2, 2006,

By Kevin Burke

Merrill Lynch announced Monday that it has elected two new members to its board of directors, one of whom is a British human rights activist. The move, effective on Oct. 1, is likely geared toward alleviating some of the pressure from its ongoing discrimination claims brought by women and African-Americans....

Stan O’Neal: Call Your Managers in Brazil 

Sep 29, 2006

On a Brazilian beach, a Merrill Lynch private banker is caught on a video in flagrante delicto with an MTV personality and former girlfriend of soccer great Ronaldo. Do you think this will help the Merrill’s broker business or hurt it? (Stupid question.)...

Women on Wall Street Still Fighting Discrimination 

Sep 27, 2006,

By Angela Covo

Less than 10 years after they settled the infamous “boom-boom room” case, Smith Barney is being sued for discrimination again. ...

Asking the Tough Questions—For Your Clients’ Sake 

Sep 26, 2006,

By Halah Touryalai

What questions do you dread when you are exploring a client’s financial needs? The Dow Jones Wealth Management Advisory Council—which is made up of eight wealth managers and one industry consultant—recently unveiled what it believes are some of the toughest issues for wealth managers to discuss with clients. ...

Will Amaranth Debacle Curb Enthusiasm for Hedge Funds of Funds? 

Sep 20, 2006,

By Kristen French

News of colossal losses at one of the largest hedge funds in the U.S., Amaranth Advisors, throws yet another cloud over the alternative investments....

Merrill’s O’Neal to Be Deposed for Discrimination Suit 

Sep 19, 2006,

By John Churchill

Stanley O’Neal, chairman and CEO of Merrill Lynch, will be deposed on Nov. 1 in New York as part of the discovery phase in a race-discrimination suit filed by one of the firm’s black brokers....

Sun Life Attracts Suitors in Effort to Unload MFS 

Sep 18, 2006,

By Kevin Burke

MFS Investment Management, long rumored to be on the auction block due to lagging profit margins, middling performance and increasing regulatory demands, could be mere days away from a blockbuster merger with another large asset-management firm, according to published reports....

NASD Fines Securities America for Failure to Supervise 

Sep 14, 2006,

By Halah Touryalai

The NASD has fined Securities America $2.5 million for failing to supervise an advisor who allegedly lured clients into early retirement with exaggerated promises of high returns....

Merrill Opens More Boutique Branches For Ultra Wealthy; Now Recruiting Private Bankers 

Sep 14, 2006,

By Kevin Burke

Merrill Lynch launched on Wednesday a new “wealth management center” in New York, as part of a larger effort to capture market share in the ultra high-net-worth advice business....