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AK Advisory Partners is a consultancy to the financial services industry,
providing advice and training to firms and individuals operating in the fee-based,
investment management and wealth management areas.
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Our ability to add value to your business rests on three core competencies:

* Knowledge & Experience

* Independence & Objectivity

* Client-Focused Solutions

 


Unlocking Real Value Newsletter - April 2016


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  Andy Klausner is a contributor to Forbes' Advisor Network. Click here to read his posts and be sure to start following him. 

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The Fiduciary Rule - What Should
You Do?
The long awaited final version of the Fiduciary Rule was announced last week. The rule is designed to protect investors from conflicted advice in the 401(k) and IRA markets, requiring all advisors to put clients' best interests ahead of their own.

A White House analysis cited by the Department of Labor concluded that conflicts of interest cost retirement savers 1% in unrealized savings per year - the equivalent of $17 billion.

The arguments over the rule are sure to continue, and expect lawsuits to try and stop it. Even though the final outcome is unclear, and the implementation of part of the Rule has been pushed out until January 2018, what should you do today?

We recommend that you be proactive and let clients know about the new rule and how it potentially affects both you and them.

If your practice has been covered under the fiduciary standard to date - great news - brag about it in your client communication. If it hasn't, explain what you have done absent regulations to achieve the same goal. Or what you are doing now in anticipation of the Rule going into effect.

More information and communication is better. If the client asks about it before you tell them about it, it's probably too late. Even if you see no impact - why not communicate?

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The Volatility Roller Coaster
As we talked about last month, volatility has subsided somewhat - for now. That the S&P 500 ended the first quarter essentially flat is misleading, as it hides a more than 10% drop in the first half of the quarter, and a similar recovery during the second half.

Because of these large recent market gains, and in light of an economy which is still muddling along, many analysts think that April - which is traditionally a strong month in the market - may not be so good this time around. They have been right so far.

And of course we are already starting to see the headlines about "Sell in May and Go Away." This refers to the old adage that the market seldom does well in the summer.

What should you do? Having just survived a harrowing first quarter, where your steady hand kept clients as calm as they could be, now is the time to talk to them again - this time about what looms on the horizon.

Earnings season starts this week, and it doesn't look like it will be particularly good, which could lead to more volatility. May and the summer are quickly approaching - so talk about what is likely to happen in the market during the summer months.

As always, being proactive, and arming your clients with value-added information and insight is the key to client retention.

From Our Library ...
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