FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
The Rapid Plunge In Oil Prices Suggests That A Global Recession Is Taking Place (Advisor Perspectives)
While the drop in oil prices is great news for average American consumers, it could be bad news for the overall economy. The problem is not so much that prices dropped, but rather how quickly they dropped, according to Gary Halbert.
“The rapid fall in crude prices is a telling sign to some Wall Street analysts and economists that there may be a global recession taking hold and the slowing growth is pushing oil lower. Remember, at the height of the financial crisis, crude got down into the high $US30s a barrel at the end of 2008 as the US and Europe went into a recession,” writes Halbert.
“This explains why the plunge in oil prices spilled over into the equity markets last week and so far this week,” he adds.
Merril Lynch Was Fined $US1.9 Million Because They Didn’t Have An Adequate Supervisory System (The Wall Street Journal)
“Merrill Lynch violated fair-pricing guidelines nearly 720 times in retail customer transactions over two years, according to the Financial Industry Regulatory Authority, which find the bank $US1.9 million,” reports Angela Chen.
Reportedly, Merrill Lynch’s trading desk purchases notes from retail customers at 5.3% to 61.5% below the market price, and then sold them to other brokers at market price.
“Even after factoring in the nature of the market for these types of instruments, the markdowns charged were simply unacceptable,” said Thomas Gira, Finra’s head of market regulation.
Baby Boombers Don’t Have Enough Savings (Financial Advisor Magazine)
A huge amount of baby boomers haven’t saved enough for retirement, according to a new study released by Bankers Life Center for Secure Retirement.
Middle-income boomers believe that $US500,000 in investible assets is the amount needed for retirement, but only 13% have that much. More than half (54%) only have $US100,000 and one-third (34%) have less than $US25,000.
As a result, only 35% of baby boomers are expecting to retire at or before the age of 65.
An Alternative Fund Manager Was Arrested For Diverting $US12.6 Million (Investment News)
Daniel Thibeault, the chief executive of asset manager GL Capital Partner was arrested on securities fraud charges last week after the FBI accused him of diverting approximately $US12.6 million from a fund, reports Mason Braswell.
Thibeault took out fake loans to gain access to money in a closed-end interval mutual fund. Approximately $US36.6 million worth were issued through the fund, and $US12.6 million were taken out through an intermediary. The money from those loans never made it to individuals, however, reports Braswell.
He was released on a $US700,000 bail secured by the equity in his house.
UBS Reps Are Going To See Bigger Bonuses (Think Advisor)
Along with its competitors Merrill Lynch and Morgan Stanley, UBS will also be changing up its payout plans for 2015, reports Janet Levaux.
“The firm says its wealth-management award has been ‘signifcantly enhanced’ to encourage advisors to grow their practice. Wealth-management production will include fees tied to advisory services, insurance, lending and planning in 2015, with bonuses of up to 6% of production,” reports Levaux.
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