PLANADVISER Weekend Newsdash
Week ending July 6th, 2018

Happy Friday, readers! Did you know that only about a quarter of financial advisers in the U.S. have any type of formal succession plan in place? This is despite the fact that regulators have strict requirements for the way clients are to be treated during either an expected or unexpected ownership transition. Perhaps even more troubling, advisers are much more likely to have a goal in place for how much they hope their business will be worth when it is sold than they are to have crafted an actual succession plan. Collected below is a series of timely articles on this topic and other pressing practice management matters. We encourage you to share some of what you learn with a client or colleague.

Editor's choice
A Mere 27% of Advisers Have a Formal Succession Plan
When it comes to valuing and transitioning their business, 61% of advisers have a goal for the value, and 48% used a recurring revenue multiple to calculate that goal. Read more >
Peers Play a Big Role in Adviser Relocations, Independence Decisions
Almost half of advisers who left their firm moved along with a larger team in 2017, versus 34% in 2012, according to data shared by Fidelity Clearing and Custody Solutions; advisers moving to an independent broker/dealer more often depart as a team versus other movers. Read more >
Skill in Fiduciary Discretion Discussions Brings Lots of Low-Hanging Fruit
Independent advisory shop founder Joe Gordon talks about winning new plan business from brokers and bank advisers who are “seriously fumbling the discussion with clients about fees and fiduciary change.” Read more >
Data Scientists Play New Role in Financial Services Vertical
Back in October 2016, James Rhodes became Morningstar’s first chief data officer; reflecting on his first 18 months in the role, he says the financial services industry is only just beginning to embrace big data. Rhodes’ hiring actually coincided with another first for the firm—the appointment of Mitch Shue as chief technology officer. The company also expanded its global headquarters in Chicago via the addition of more than 29,000 square feet of space specifically designed for its technology employees. Read more >
Advisers Fret Lack of Support and Limited Autonomy
A new survey of advisers published by Schwab Independent Branch Services suggests client-facing staffers are “brimming with entrepreneurial drive,” and as a result they are increasingly drawn to independence. Read more >
LPL Recalibrates Retirement Business for the Long-Term
Bill Beardsley, head of Retirement Partners at LPL, gives his take on the firm’s decision to close the Worksite Financial Solutions program, and on his plans for lasting growth in the DC retirement space. Read more >
MOST POPULAR STORIES
Warn Your Clients: Don’t Abuse Coronavirus Hardship Withdrawals
Though retirement plans can allow individuals to self-certify that they qualify for a penalty-free coronavirus-related distribution, should the IRS discover otherwise during a future audit, a participant can be subject to substantial penalties.
ERISA Excessive Fee, Self-Dealing Suit Targets MEP

Pentegra Retirement Services and other plan fiduciaries are accused of failing to make sure fees are reasonable and acting in Pentegra’s, not plan participants', interest.

PANC 2020: Is It Time to Re-evaluate TDFs?

There are a variety of TDF solutions to meet participants needs, so when should a custom solution be considered, and how do advisers evaluate TDFs in an unprecedented year for the markets?

A New World and New Opportunities for Alpha
Pandemic-driven volatility has once again highlighted the relative virtues of active and passive management.
Home Depot ERISA Lawsuit Clears Dismissal Motions

While a court has ruled the plan’s advisers should be carved out of the litigation, the counts against Home Depot fiduciaries will proceed.

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