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Client best interest rule raises standards but ‘muddies the water’ on advisor, broker differences

Client best interest rule raises standards but ‘muddies the water’ on advisor, broker differences

Finance
Ariel Skelley | DigitalVision | Getty ImagesWhat is a suitable investment for someone? What is in an investor's best interest? What is the difference between a securities broker and a financial advisor? If you have no idea, you're not alone."There is still so much confusion with financial terms," said Ashley Guerra, chief compliance officer for registered investment advisor Gamble Jones Investment Counsel, ranked No. 12 on the CNBC FA 100 list of top financial advisors for 2019. "I don't see a lot more awareness of the issue among investors."I still have friends that call me their broker sometimes," she added.Regulation Best Interest (Reg BI), the new rules passed by the SEC in September, may have raised the standard of care required of brokers making investment recommendations to the...
JP Morgan hires bankers to boost corporate client services

JP Morgan hires bankers to boost corporate client services

Finance
MUMBAI: JP Morgan has hired bankers from Citibank and DBS to boost its corporate client services as it revs up presence in the mid-corporate segment which has been growing substantially. It hired Pranav Chawda, as head of Client Banking and Specialized Industries from DBS Bank and he had worked for Citibank prior to that. Dhaval Shah, who was the Director at Citibank most recently, would head the Western Region. Srinivasan Kannan, who has been with the bank for a while, would lead the business in Southern India. “India is an important market and we’ve taken a long-term approach to building lasting relationships,” said Kalpana Morparia, chairman, South and South East Asia, J.P. Morgan. “We have deep local knowledge, global insights…,which uniquely position us to serve diverse companies in
When an advisor has to deliver some bad news to a client

When an advisor has to deliver some bad news to a client

Finance
JohnnyGreig | E+ | Getty ImagesWhile a gym workout can be a lot of fun, the cliche "no pain, no gain" is also true. The same goes with finances. Savers and investors who want secure financial futures tomorrow often have to face painful financial facts today — and it can fall to financial advisors to point them out.In fact, that's their job. From cutting back expenses to cutting loose bad actors, financial health sometimes requires a little prudent pruning, with professional help.We asked eight members of the CNBC Digital Financial Advisors Council, along with Helen Modly of Buckingham Strategic Wealth, what was the worst thing they ever had to tell a client.Louis Barajas, founder and CEO of Wealth Management LAB, Tustin, California: "We do a thorough review of a new client's financial st
Ignoring this client asset may become an advisor’s nightmare

Ignoring this client asset may become an advisor’s nightmare

Finance
Caiaimage/Trevor Adeline | Getty ImagesWhen it comes to clients who own permanent life insurance with cash value, financial advisors have both an asset and a liability.On the one hand, clients appreciate having a financial advisor who can analyze the contract and ensure that it still meets their goals. "It's a perfect way to build relationships with clients, especially when it's a policy you didn't sell, and you look like a rock star," said Thomas J. Henske, a certified financial planner and partner at Lenox Advisors in New York.More from FA Playbook:Financial advisors are more stressed out than their clientsAs a financial advisor shortage looms, colleges fill the gapAdvisors create a game plan for this retirement expenseHowever, if an advisor chooses to ignore the insurance contract, you ...