FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
Investors need to be aware of advisors using fake credentials (Think Advisor)
The US Securities and Exchange Commission warns some advisors are not who they say they are. The SEC suggests investors perform a thorough background check before deciding to trust someone with their investment money. Think Advisor says, “The alert not only cautions investors to watch out for unregistered advisors, but states that advisors may inflate their professional experience, credentials or lie about their education and awards that they have received.” Investors can visit the “Ask and Check” section of the SEC’s investor.gov website to perform background checks on perspective advisors.
The bond rout could turn into a bloodbath (Bloomberg)
The recently volatility in fixed income markets has led to the sharpest selloff in US corporate debt in two years. Investors have pulled their money out of the higher yielding corporate debt space in fear of rising interest rates. Bloomberg reports Bank of America analysts believe, “If 10-year Treasury yields climb to 2.6 per cent in the next two weeks from 2.34 per cent as of 11:24 a.m. in New York, outflows from top-rated corporate bonds may rival those seen during the taper tantrum.”
Beware of lifestyle inflation (Kapitall)
Many Americans are living paycheck to paycheck despite having six-figure jobs. According to Kapitall, the latest UBS Investor Watch report found, “Millionaires, in particular, feel intense pressure to maintain the high standards of living they have established for their families, trapping themselves in a cycle of always wanting and needing more.” While this so-called “lifestyle inflation” might be part of the problem, data from the Bureau of Labour Statistics shows someone would have to earn $US219,888 to have the same purchasing power as someone making $US100,000 30 years ago.
LPL Financial grabs another team (Financial Planning)
LPL Financial announced the addition of a team of seven from Lincoln Financial Advisors. The group brings approximately $US250 million in client assets to LPL’s planning firm Bridgeworth, which will now have nearly $US850 million AUM. Brian Hinson will become managing director at Bridgeworth as a result of the deal. According to Financial Planning, “Hinson says there were three key aspects that attracted the team to Bridgeworth: the firm’s commitment to clients, its expertise in the field and its collaborative nature.”
Advisors weigh in on robo advisors (Financial Advisor)
Financial Advisors reports, a survey conducted by Pershing LLC concluded, “27 per cent of advisors felt that digital advice and robo-advising technologies were irrelevant to their practice, while another 23 per cent currently felt that technology’s presence in the marketplace created additional competition.” Also noteworthy, the study found 73 per cent of advisors believe robo advisors were a threat to their business. However, 91 per cent of respondents felt their jobs wouldn’t become obsolete.
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