Products September 18, 2007

Financial Advisors Legal Association Rolls Out Errors and Omissions Insurance

Financial Advisors Legal Association, a national industry defense and education provider for financial professionals, has announced the rollout of a comprehensive errors and omissions insurance policy designed specifically for individual financial professionals, broker/dealer and registered investment adviser (RIA) firms.
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Financial Advisors Assurance Select covers arbitrated claims initiated by individual clients at $1 million per claim – $2 million in the aggregate, the announcement said. Additional policy benefits include risk management and loss control programs. The policy covers all the products and services represented by financial professionals.

Fees are $2,345 for the first year, then $1,845 per year for subsequent years. Deductibles are two tiered – $2,500 for defense and $10,000 in the event of settlement. Reserves are insured by Lloyds of London syndicates all “A’ rated.

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Broker/dealer and registered investment advisory firms are co-insured under the individuals licensed under the firm and pay no premium. However, firms are required to pay a one-time fee of $100 per insured rep to gain the co-insurance benefit.

Errors and omissions insurance is designed for the individual financial professional and is completely portable, even into retirement. The coverage protects against arbitrated claims from individual clients and their heirs.

For more information about Financial Advisors Assurance Select, visit www.falegal.com or contact Robin S. Mills at 800-261-0633.

Deals & People September 18, 2007

Fidelity Rebrands RIA Business

Fidelity Registered Investment Advisor Group has been renamed Fidelity Institutional Wealth Services.
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According to Fidelity, although Registered Investment Advisors (RIAs) currently make up a majority of the business, the change recognizes the evolving role trust institutions and third party administrators (TPAs) also play in meeting the wealth management needs of investors.

According to research conducted for Fidelity, the majority (70%) of millionaires work with at least one financial professional, and an additional 13% report they are likely to start working with one over the next 12 months, the release said. In addition, assets in personal trusts are expected to increase from $3 trillion to $7 trillion by 20102, while increased flows into TPAs has resulted in a market share increase from 28% in 200 to 35%.

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“The growing reliance on workplace retirement plans, the maturing of the Baby Boomers, and greater consumer demand for access to sophisticated wealth management products and services is driving the evolution of our clients’ businesses,’ said John W. “Jack’ Callahan, president, Fidelity Institutional Wealth Services, in a news release.

In conjunction with the name change, Fidelity Institutional Wealth Services announced the launch of a new brand advertising campaign. The campaign includes print and online ads, direct mail, and a redesign of the company’s Web site – http://fiws.fidelity.com.

Fidelity Institutional Wealth Services was established in 1992 and provides trading, custody and brokerage services to RIAs, trust institutions and TPAs. The company custodies more than $290 billion in assets on behalf of approximately 3,800 clients.

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