Panademic Stress Test
We have written a lot about the potential for market corrections and scenarios that may disrupt the decade long bull market. The Coronavirus is the most tangible example of a short-term threat to the market’s long upward climb. And our clients, keenly aware of the potential for market disruption, have asked us to create a Coronavirus stress scenario for Portfolio Crash Testing Pro
Advisors are still in denial about Regulation Best Interest
Here are my key takeaways from the LINC conference. When the SEC knocks, how will you prove compliance? The Stars Point to Compliance Better to bargain We are here to help you with compliance. More to come from LINC 2020 My colleague, Luke St. Angelo (RiXtrema’s VP of Client Success), and I had the opportunity...Read More
Client Relationship Summary (CRS Form) Checklist
Introduction Description of relationships and offered services A statement of the applicable conduct standard associated with the services Fees and Costs A Comparison of BD and RIA services for firms that are not dually registered Conflicts of Interest associated with the firm’s relationship to its services, fees, and other BDs and RIAs Legal and disciplinary...Read More
Does Reg-BI have teeth? Don’t wait to find out…
We are seeing tremendous amount of interest from advisors in RegBIoptimizer. And what is particularly gratifying is that this time people understand that procrastination is NOT a strategy. RIAs and BDs know that procedures and documentation will be very different post-RegBI, and RegBI Optimizer will help you reach compliance. Still, some people do prefer to...Read More
Don’t fall blindly into these 3 conflicts in Reg BI
Revenue-Sharing Conflicts Reg-BI represents a significant change in the SEC’s regulation target. Revenue Sharing is the practice of an investment fund security sharing money back with broker-dealers who sell it to clients and it was not regulated by the SEC prior to Reg-BI. By Reg-BI’s new standards, it exposes BDs to Best Interest violations. Specifically,...Read More
Proving Compliance with RegBI Optimizer
PROVE COMPLIANCE WITH THE SUMMARY REPORT COMPARE ROLLOVER FEES PULL IN RETIREMENT PLAN DATA PRESENT CLIENTS WITH A COMPLETE COST PICTURE CRASH RATING PROVES YOUR RECOMMENDATION CONSIDERS THE CLIENT’S UNIQUE FINANCIAL PROFILE COMPARE YOUR FEES TO YOUR COMPETITORS MANAGE YOUR ADVISORS WITH THE ADMIN PORTAL When the SEC knocks, how will you prove compliance? With...Read More
Form CRS is the biggest Reg-BI compliance hurdle for RIAs
Reg-BI brings Broker-Dealers into a Fiduciary Standard. Registered Investment Advisors will be challenged to prove they are already putting their clients’ interests first and have processes that ensure ongoing compliance. Form CRS is a crucial hurdle in showing due diligence.
The Forecast Folly: Why financial experts rarely stand the test of time
Present success does not indicate future outcomes The Power of Other Opinions What do experts say about predictions? Two types of experts In Brief Present success does not indicate future outcomes Predictions are a form of guessing, where sometimes the guessing is more educated than others, and a more educated guesser is not necessarily more...Read More
What is the Best Interest, Anyway?
The devil’s in the details. DOL’s Fiduciary Rule Standard Reg-BI expands on FINRA’s Suitability Standard Best Interest according to a financial lawyer The devil’s in the details. Many of the terms used in Reg-BI, like “Best Interest” are not explicitly defined within the 1300 pages (guess they ran out of the room). In general, the...Read More
What’s going on with Equal Weighted Index Performance?
Lately, it seems the only equity investment worth making is in US large caps. The cheaper and more passive, the better. Of course, passive US large-cap equities are not the absolute best performing asset available over the past few years, but the category is pretty hard to beat for ease of implementation, known risk characteristics, price and performance.