FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
Buying Film Tax Credits Is A Great Way To Help Clients Lower Their Tax Bill (The Wall Street Journal)
Advisors can help lower their clients’ state tax bill by buying tax credits from the TV and film industry writes Jini Thornton of Atlanta-based Envision Business Management Group in a new Wall Street Journal column.
“These tax credits are given to people in the film and TV industry as incentives to come into a particular state and make their movie or TV series there. Producers are able to sell these credits to general business owners or individuals who are looking for tax strategies to offset their state taxes. They then use the money from the tax credit sales to fund their projects.”
She points out that these tax credits vary from state to state. Thornton also writes that investors should make sure they have a “reputable broker” since these credits are sold through brokers and that the producer meet the state requirements to receive these credits.
Bond Traders Are Passing Around This Report That Says The Fed Has Hit ‘Ctrl-Alt-Delete’ On Tapering (Medley Global Advisors)
Bond traders have been passing around a report titled “Fed: Ctrl-Alt-Delete” by Regina Schleiger and Jeremy Torobin at Medley Global Advisors. Schleiger and Torobin argue that at the September meeting the FOMC “effectively hit the reset button and is back where it was six months ago — at the very start of a long process of building the case for a downward adjustment to the Large-Scale Asset Purchase program.”
Advisors Tend To Shy Away From Alternative Investments (Investment News)
A study by Natixis Global Asset Management has found that only 25% of advisors invest in alternative investments like hedge funds, private equity, and commodities. Those who do use alternative investments typically work with high-net worth investors. This is a bit of a problem for advisors, according to Megan Durisin at Investment News since 70% of those surveyed also said they need to use new portfolio strategies to bring their clients healthy, low-risk returns.
The SEC is probing US mutual funds to make sure they don’t implode if Puerto Rico’s credit rating is cut again, according to Bond Buyer’s Kyle Glazier and Taylor Riggs. 77% of municipal bond mutual funds hold Puerto Rico debt, according to Bloomberg.
“Securities law experts said the SEC probes appear to be aimed both at understanding the potential effects on the market if the heavily-indebted commonwealth suffers a further downgrade or even a default,” report Glazier and Riggs. “They also seem to be checking to make sure that funds investing in those bonds are adequately disclosing the risks involved in Puerto Rico debt.”
Here’s How Good Advisors That Have Been Fired Can Have A Life After Termination (WealthManagement.com)
As compliance has become more vigilant good advisors have had their employment terminated for what they believed were authorised transactions, reports Mindy Diamond at WealthManagement.com. “It’s typically the “one-off” arrangement that had been verbally approved by local management that winds up being viewed differently by someone above that forces the advisor into hot water.”
But this doesn’t mean the advisors career has come to a dead end. “It all depends on the advisor’s ability to hop into action immediately following the termination and secure proper counsel — a lawyer who specialises in the financial services industry and a skilled recruiter who can advocate for the advisor. Time is of the essence in order to ensure that the language in your U5 — the form for terminations that will be sent to FINRA from the firm within 30 days — is as “favourable” as possible. This is the language that is permanently recorded on an advisor’s U4 and most compliance departments will not permit hiring decisions without it.”
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