FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
4 steps to win with clients (Investment News)
2015 was an unhappy year for investors as a sideways stock market saw big-name listings provide support. Joe Duran, United Capital’s CEO shared with Investment News four steps that can help you win over your clients during 2016. First, make sure to understand your client’s entire financial balance sheet and be there to help with all their important financial decisions. Next, charge your client appropriately and deliver the guidance they need. Thirdly, explain to your clients how you make money so they know exactly what they are paying for. Finally, be sure to embrace technology. Duran says it’s more important than people to “maintain your margins, and your lifestyle.”
Bill Gates was the insider who sold the most stock in 2015 (Business Insider)
Microsoft founder Bill Gates sold $1.5 billion worth of the company’s stock in 2015, according to Sqoop.com. But that was far less than the $3.35 billion he sold in 2014. The data shows Google co-founders Sergey Brin ($868 million) and Larry Page ($857 million) were second and third on the insider selling list. Insiders are allowed to sell stock as long as they don’t used privileged information during their decision process.
The SEC dropped part of its case against Steve Cohen (Business Insider)
The US Securities and Exchange Commission said it will no longer pursue charges against Steve Cohen for failing to supervise Michael Steinberg, a former trader at SAC Capital, whose case was overturned in the fall. However, Cohen is still being pursued by the division for failing to supervise Mathew Martoma, a SAC trader who was sentenced to almost a decade in prison for insider trading. Previously, Cohen was ordered to pay a $300 million fine and was barred from managing outside investor money. Cohen has since re-titled his firm Point72 Asset Management and manages his own money and that of colleagues.
Financial resolutions for 2016 (WalletHub)
With the New Year just more than a week away, now is the time to begin thinking about resolutions for 2016. WalletHub says only 8% of resolutions are actually kept, so it’s important to give them some serious thought, especially in regards to your finances. One resolution could be to review your financial situation and reassess your priorities. Another idea is to create a budget so you know exactly how much you can spend and where. A third idea is to build a rainy day fund. Less than 50% of Americans have one. One final resolution could be to get out of debt. For WalletHub’s complete list of 16 resolutions click the link above.
FINRA fined Cantor Fitzgerald over microcap sales (Think Advisor)
The Financial Industry Regulatory Authority has fined Cantor Fitzgerald $7.3 million for selling billions of unregistered shares of microcap stocks. In addition, Think Advisor reports that Jarred Kessler, Cantor’s Executive Managing Director of Equity Capital Markets, was suspended for three months and fined $35,000, while equity trader Joseph Ludovico was fined $25,000 and suspended for two months. “FINRA has no tolerance for firms and business executives who choose to engage in this business without robust systems designed to ensure that they do not become participants in illegal, unregistered distributions,” noted Brad Bennett, FINRA’s executive vice president and chief of enforcement, in a statement. Cantor neither admitted nor denied the charges.
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