Life insurance companies offer retained asset accounts (RAAs) as a convenience to beneficiaries upon the death of an insured. However, this past summer, RAAs drew controversy after the publication Bloomberg Markets raised questions about the interest rates paid, whether beneficiaries truly understood their options, and the guarantees that apply to policy proceeds. Since then, state regulators have begun to issue guidelines, while the National Association of Insurance Commissions (NAIC) has begun drafting a model law. Read more...

Compliance software should play a greater role in practice management, according to a new report from the Financial Planning Association (FPA). The recent compliance edition of the FPA-ActiFi 2010 Advisor Technology Reports suggests advisors should think holistically about compliance rather than view it as an ancillary practice activity. To that end, they should use the same tools, processes, and people to manage compliance as they do to manage other practice functions. Read more...

Resident and non-resident agents licensed to do business in New York must begin disclosing to clients information about the compensation they receive from carriers. Regulation 194 is slated to take effect on January 1, 2011. Read more...

The Securities and Exchange Commission, Financial Industry Regulatory Authority (FINRA), and North American Securities Administrators Association (NASAA) have issued a joint report that outlines practices used by financial services firms to better serve senior investors as they approach and begin retirement. Read more...

If you’re a registered investment advisor, get ready to disclose more information on your Form ADV, Part 2 and to use plain English. That’s because the Securities and Exchange Commission recently voted to adopt changes to the principal disclosure document that advisors provide to clients and prospective clients.  Read more...

The North American Securities Administrators Association (NASAA) has enhanced its Investment Adviser Public Disclosure (IAPD) website to allow investors to electronically access information about individuals who work for money management, financial planning and other investment advisory firms. This enhancement will provide information on investment adviser representatives – the individuals who work for these firms and provide investment advice to clients. Read more...

FINRA is once again warning advisors with securities licenses that using ghostwritten communication materials may violate NASD Rule 2210. Read more...

One of the best ways to stay out of hot water is to learn from the mistakes of others. That’s the theory behind National Ethics Bureau’s Rogue Advisors feature, which appears monthly in Senior Market Advisor’s Market Conduct newsletter and on SMA’s web site. Now there’s another valuable resource: case histories from the CFP Board of Standards that illustrate what can happen when an advisor violates legal or ethical standards. Read more...

Messy desks may be the sign of a creative mind. But they’re also a big compliance risk. That’s because if you leave client files around, outsiders can easily grab them, which can lead to identity theft and other problems. Read more...

The Financial Industry Regulatory Authority is about to give advisors even greater incentive to keep their records free of black marks. That’s because FINRA is moving to expand the amount of information publicly available on its BrokerCheck service. Once the SEC approves, the expanded BrokerCheck will: Read more...