Correction: The original version of the Investment Advisers list incorrectly identified the top executive for CBIZ Retirement Plan Advisory Services. Brian Dean should have been listed as president. So what exactly is the difference between an investment adviser and a money manager? At a glance, the firms on our Money Managers list and Investments Advisers list might look similar. • TO SEE THE FULL LISTS, BECOME A DATA MEMBER In some ways, they are: Technically, the firms on both lists are all registered investment advisers regulated by the U.S. Securities and Exchange Commission or, for the smallest firms, by the state of Ohio. That means that they're all somehow engaged in providing advice related to investments and/or managing portfolios. And the "registered" part means they're legally bound to act in their clients' best interests. Making matters more confusing, some firms are hybrids, providing both money management and investment advisory services (more on that later). So, … [Read more...] about Lists: Money managers, investment advisers … what’s the difference?
Investment advisers act
The “Small-Business Credit Availability Act” was passed by Congress and signed by President Trump to ease assets-to-debt ratios from 2-to-1 to 1.5-to-1 for “business development companies” — BDCs, firms that bundle corporate debt into funds they sell to investors — writes S&P Global Rartings in a report last week. The sector includes South Philly-based FS Investment Corp., and rival BDCs owned by BlackRock, Texas Pacific Group, and 76ers owner Josh Harris’ Apollo Global, among other big firms. The change will “increase credit risk” in what is already a competitive business, writes the S&P analyst team, headed by Matthew Carroll. The new law makes BDCs no safer than “other nonbank finance companies,” Carroll wrote. That means S&P expects to drop most of their credit ratings from around BBB- to BB+, same as other nonbank finance companies, but a notch down from where they deserved to be when the rules … [Read more...] about Congress and the president have made BDC investments more risky: S&P
Financial advisers who provide individuals with investment advice for their IRAs, 401(k)s and other retirement accounts have new rules to follow starting Friday that are meant to protect investors from advisers' conflicts of interests. The Department of Labor's new regulation, known as the Fiduciary Rule, requires brokers, investment advisers and other financial professionals to base their recommendations on actions like rolling over your 401(k) to an IRA on what makes financial sense for you -- and not and just because your adviser wants a commission to increase his or her income. Considering the growing population of older workers with large balances in employer-sponsored retirement plans getting closer to retirement, the DOL saw a need to protect workers when they retire and take their assets from the plan. The DOL is the main regulator of employer-sponsored retirement plans, and all service providers to such plans are now required to act as fiduciaries. Beginning June … [Read more...] about A new rule for many financial advisers: The customer comes first
It’s pretty clear: Americans want their financial advisers to have their best interests at heart in making savings and investment recommendations. Unfortunately, many in the financial industry don’t want this responsibility, also known as acting in a fiduciary capacity. How federal regulators and the industry reconcile these conflicting views in the coming months will help shape the financial advice consumers get for years. According to a recent survey from Financial Engines, 93 percent of Americans think financial advisers who provide retirement services should be legally required to put their clients’ best interest first. However, 53 percent of those surveyed mistakenly believe all financial advisers are already legally required to do so. (Financial Engines is the nation’s largest independent investment adviser and is an institution that accepts fiduciary responsibility when making recommendations to its clients.) The Financial Engines survey is … [Read more...] about What you need to know about your financial adviser
Last Updated Feb 3, 2017 9:00 AM EST Under laws and regulations currently in effect, financial advisers aren’t obligated to act in your best interests when recommending investments for your retirement accounts and offering guidance on your retirement plans. Are you surprised to hear that? If so, you’re not alone: According to a survey conducted by Financial Engines, the country’s largest independent registered investment adviser, 46 percent of all Americans mistakenly believe that all financial advisers are fiduciaries and are legally required to put the best interests of their clients first when it comes to making recommendations on their retirement savings.The U.S. Department of Labor (DOL) issued regulations in April 2016 that would require advisers to act as fiduciaries when making retirement savings recommendations. The so-called “fiduciary rule” had been scheduled to go into effect in April 2017, but its future is in doubt. Responding to … [Read more...] about Who is your financial adviser really working for?