The regulatory hits keep coming for LPL Financial
The rest of this week's must-read stories include Betterment's robo-adviser for humans, big changes afoot in Social Security, and a focus on picking the right alternatives for clients
InvestmentNews readers jumped on the latest issues that thrust LPL Financial into the headlines this week. New developments in the robo-adviser space also had our readers buzzing, including the robo response to the market downturn. Social Security claiming strategies and statements were a hot topic, and the debate raged over what kinds of alternative investments are appropriate for investors. Here are this week’s must-read stories for advisers:
LPL forced to pay big over VA switches in Massachusetts
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The hits kept on coming for LPL Financial this week, as variable annuity switches landed them in hot regulatory water with Massachusetts Secretary of the Commonwealth William Galvin (pictured). This comes on the heels of the news LPL terminated its high-profile Houston branch manager amid several allegations, including selling away, borrowing from a client and engaging in a business transaction that created a potential conflict of interest.
What Social Security cost of living adjustments mean for retirees
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The news of a projected increase to Social Security cost of living adjustments continues to get digested by financial advisers, with InvestmentNews contributing editor Mary Beth Franklin offering some insight on what the changes will mean in 2015. A new risk-based approach to claiming made waves, as new ways to offset threats of longevity, inflation and markets emerge. And mailed Social Security statements got a new look, with some valuable information included for the first time.
Betterment’s robo-advisers for humans has arrived
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Betterment is helping traditional advisers carve out their own piece of the automation pie with the announcement of Betterment Institutional. The platform, now in beta, allows advisers to outsource portfolio re-balancing, daily tax-loss harvesting and trust functions. In the realm of robo-advisers, the last few weeks have also offered a new challenge: reassuring nervous investors amid heightened market turmoil.
Are illiquid investments like nontraded REITs appropriate for investors?
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John H. Grady, chief operating officer of Realty Capital Securities, a subsidiary of the largest sponsor of nontraded REITs, is fighting what he calls a mistaken impression among regulators that illiquid products are dangerous to investors. So while experts like Cliff Asness say that portfolio diversification can be a good thing when the markets get choppy, picking the right alternative investment remains a touchy subject.
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