Slideshows

Week's Best Quotes: 'I'm Not Going to Tell Anyone I Changed My Disclosure'

From wirehouse CFPs talking about not telling clients they weren't really fee-only to industry researchers discussing the opportunities for advisors with LGBT planning expertise, here are the most notable quotes from the past week's stories. Disagree with any of them? Let us know in the comments section below. -- Paula Vasan

"There appears to be a greater proclivity to discount fees for large account relationships, even from these lower incremental levels.”


--Dr. Kenneth Kehrer, a principal of Kehrer Saltzman & Associates, who found that banks with more trust assets under management produce less revenue on average than banks with fewer assets.


Read the story:


Want More Revenue from Trust Assets? Keep Account Size Small

"We believe the advisors that utilize being knowledgeable about the unique legal challenges that [LGBT investors] face will see great loyalty from them. If the advisor does that it demonstrates that they care and have a personalized solution."


--George Walper, president of the Spectrum Group, on the opportunity for advisors to help LGBT investors facing complex legal issues.


Read the story:


Advisor Opportunity: LGBT Planning Expertise

“The traditional place we have gotten growth is from people in their 30s and 40s and we would expect that to continue."


--Ray Ferrara, new chairman of the CFP Board, on the board's goal of growing the number of CFPs to 81,000 by 2017.


Read the story:


CFP Board Aims for 81,000 CFPs

“I think direct providers are truly growing but I think that bank advisors can still make waves."


--Roger Stamper, a senior analyst at Cerulli Associates, on how opportunities for advisors are widening even as clients increase the number of providers they use.


Read the story:


Bank Advisors Can Still Make Waves

“I’m not going to tell anyone that I changed my disclosure. The issue is that most clients do not have a clear [understanding] of these definitions.”


--Geraldo Alves of Merrill Lynch in Pasadena, Calif., who is one of 8,000 advisors who were affected in September when the CFP Board abruptly and unilaterally removed all fee-only compensation disclosures from advisor profiles on its website.


Read the story:


Many Wirehouse CFPs Did Not Tell Clients They Weren't Really Fee-Only

“Millennials seek mentors that will take an interest in them and help them grow towards goals. They’re used to feedback and they want it in the workplace.”


--Cam Marston, president of Generational Insights, on how to hire a millennial amid the advisory industry’s talent shortage.


Read the story:


How to Hire a Millennial

From wirehouse CFPs talking about not telling clients they weren't really fee-only to industry researchers discussing the opportunities for advisors with LGBT planning expertise, here are the most notable quotes from the past week's stories.

Comments (4)
I find it interesting that there are about twice as many CFP(r) marks holders in the United States as there are investment adviser representatives. If the CFP Board demands that one who uses the marks behave as a fiduciary, and in order to charge a fee for a financial plan one must be registered as an IAR, what are the other half doing? Is the CFP designation merely a marketing and sales ploy?
Posted by | Friday, February 14 2014 at 12:56PM ET
That's exactly what it is...a sales ploy. While there is nothing wrong with continuing education, and the CFP coursework is definitely that, the designation's high place of esteem is more attributed to their marketing than that of its value, in my opinion. There are other designations that require the same course load and then some, but aren't as well known. It is all about the marketing of the CFP(r)
Posted by Ryan S | Friday, February 14 2014 at 3:53PM ET
The CFP Board has gotten its own swollen head. The attitude the "fee only" is the only way you can look out for your client is just wrong. There are many products, insurance being the lead, that the "no-load" fee engineered product simply doesn't offer the client, and it is the client we should all be about, that offer the best benefits.

The real CFP goal should be to do the best job for the client, period. Locking themselves into some arbitrary payment structure does not make them more pure!

Posted by VICTOR | Friday, February 14 2014 at 5:02PM ET
Our firm is fee-based and feel we do not have limitations. One question to fee-only AUM folks....maybe ask the client "how long do they expect to hold their AUM portfolio"? If it's longer than 5 years, for example, is a 5% up front load more or less cost to the client over many years? And the hopful increase in the account at 1% appears to cost more to the investor. Which costs less?
Posted by imported-name i | Monday, February 17 2014 at 1:04PM ET
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