FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
FINRA fined a company $US2.6 million because it didn’t save 168 million emails (Wealth Management)
FINRA, the Financial Industry Regulatory Authority, fined Scottrade $US2.6 million because it failed to save about 168 million outgoing emails and failed to record email communications “in the proper format,” reports Megan Leonhardt.
“Firms must maintain sound supervisory systems and procedures to ensure the integrity, accuracy, and accessibility of electronic books and records,” said Brad Bennett, executive vice president and chief of enforcement.
Investors need to relax about China (Franklin Templeton via Advisor Perspectives)
“In terms of the impact of slowing growth in China, again we feel there has been unwarranted investor panic,” argues Mark Mobius of Franklin Templeton Investments. “While China’s equity market volatility and the government’s ineffectual attempt to intervene directly to support prices have dominated headlines this past summer, we remain confident that the government’s efforts to effect a broad economic rebalancing will succeed.”
“While news of China’s market ups and downs makes for splashy headlines, we expect the impact of recent declines in mainland share indexes to have limited impact on the broader economy due to the low level of household wealth allocated to equities in China (less than 20%, according to our research). As household exposure to local equities is very low, we believe there would not be a profound wealth effect even if we saw a market crash in China,” he added.
“Millennials are extremely conservative investors who on average hold 52% of their savings in cash (compared with 23% for other age groups,) which reflects mistrust as well as a general lack of financial knowledge,” writes Michael Conway. “It’s therefore important to educate younger clients about common investment and planning strategies that align with their specific goals.”
In fact, millennials are considered to be the least trusting of any generation, notes Conway. He attributes their uneasiness to living through “one of the greatest financial collapses in US history just as they were entering the workforce.”
US consumers still got it … probably (Morningstar)
“We continue to believe the underlying growth of the U.S. economy remains 2.0%-2.5%, driven by consumers and housing without a lot of help from any other sector. Better consumer incomes and low inflation combined with better employment prospects should keep these two key sectors moving upward, even in the face of a soft world economy,” writes Morningstar’s Robert Johnson and Roland Czerniawski.
Johnson and Czerniawski also note that although it looked like the retail sales were kind of disappointing, if you take out gas and auto sales, then “sales growth was a more respectable 0.3%.” And even that number maybe have been somewhat depressed due to the fact that people haven’t been buying winter apparel during this warm weather.
“UK prosecutors charged 10 former Deutsche Bank AG and Barclays Plc employees … with conspiracy to manipulate the Euribor benchmark, the Serious Fraud Office said in a statement Friday. Another trader listed anonymously in court documents may also be charged, according to three people familiar with the case,” reports Suzi Ring.
Spokespeople for Barclays and Deutsche Bank declined to comment. The ten traders are scheduled to appear in court in London in January.
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