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DOL rule leads to portfolio design outsourcing

Regulatory/Compliance

A recent report by Cerulli Associates finds that the DOL’s fiduciary rule is prompting more advisors to outsource portfolio construction so they can spend more time on client relationships. The report notes that home offices are looking to protect themselves from legal and regulatory risk by centrally managing advisors’ portfolios or outsourcing them, according to a Financial Planning article. Read the details below. Also, the SEC’s Office of Compliance Inspections and Examinations recently issued a risk alert regarding advisors’ deficiencies in complying with advertising rules. According to ThinkAdvisor, the alert lists the most frequent advertising-rule compliance issues identified in advisor exams, including misleading performance results and misleading one-on-one presentations. Read the full story below.

Fiduciary rule prompts more firms to outsource portfolio design

By Kenneth Corbin

Source: Financial Planning

With only so many hours in the work day, would you rather spend time on crafting winning portfolios or building relationships with clients? Many advisors might prefer to do both, but they increasingly need to outsource portfolio construction in favor of spending more time working on a client’s holistic financial picture, according to Tom O’Shea, associate director of Boston-based consulting firm Cerulli Associates.

https://www.financial-planning.com/news/fiduciary-rule-prompts-more-firms-to-outsource-portfolio-design

SEC Highlights Top Advisor Ad Violations

By Melanie Waddell

Source: ThinkAdvisor

The Securities and Exchange Commission’s exam division released Thursday a Risk Alert detailing advisors’ failures to comply with Rule 206(4)-1, also known as the Advertising Rule, under the Investment Advisers Act. The agency’s Office of Compliance Inspections and Examinations states in the alert that the compliance issues were most frequently identified in deficiency letters recently sent to SEC-registered investment advisors and as part of an examination initiative that focused on advisors’ use of “accolades” in their marketing materials.

http://www.thinkadvisor.com/2017/09/14/sec-highlights-top-advisor-ad-violations?slreturn=1505856834

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