Inside Information

This last reviewed issue of 2011 actually contains one of the best articles of the year, maybe THE best research report, oddly enough, on the subject of tactical asset allocation and whether it can be done effectively. As you'll see, it takes a very conservative position and defends it, to my mind effectively. As I say in the review, from now on, after this article, the discussion in the profession won't be on whether it is possible to add value through tactical shifts, but whether it can be done under broader, more common circumstances. It's going to be an interesting debate. [Read more »] 

The real story behind the fight over payroll tax cuts in Congress. [Read more »] 

The Financial Planning Coalition and Investment Advisers Association have issued a devastating analysis of the cost of FINRA regulation compared with the SEC. But also notice the SEC's remarkable lack of staff productivity. [Read more »] 

I kind of like the concept of emotional alpha, offered by a column in this issue of Financial Advisor magazine. In fact, I can envision other alphas: the added peace of mind you would provide, the enhanced possibilities of life, an alpha related to a higher savings rate--perhaps someday we'll have a way of measuring all these things.

Meanwhile, Roy Diliberto offers a reminder that we need to constantly be aware of trends, which usually force the advisory firm to provide ever-more-comprehensive and better service and expertise. Static equals losing market share and maybe your business as well. And Scott MacKillop offers a similar message relevant to the investment markets; a lot of times we assume that something is true without carefully examining the assumptions behind it. The more we learn, the more we have to evolve.
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What are you missing if you try to avoid short-term market losses? [Read more »] 

The European Union is still mired in financial crisis. The U.S. has been following a different policy. [Read more »] 

Stephanie Bogan is demystifying the process of creating a top-tier advisory firm, and overcoming your biggest objections to making your practice better and more efficient. [Read more »] 

Angie Herbers is currently involved in two of the most important projects currently going on in the practice management space: 1) her ongoing efforts to identify the office environment that best promotes loyalty and efficiency and growth among the staff; and 2) her exploration of "owner's guilt," and its implications for advisor management practices, which continues in this issue. In the process, I think we're looking over her shoulder and learning a lot.

Meanwhile, Bob Clark points out what you probably already know: that independent advisors are taking over market share from brokerage firms, and that brokerage firms have a plan to stop that nonsense by regulating everybody under FINRA and crushing independent advisors under a lot of unnecessary regulation. Mark Tibergien suggests that sellers of advisory practices help the buyers ask important questions about the deal as a way of protecting their staff and clients, and we learn that the SEC is revamping how it inspects advisor offices, hopefully for the better.

We are a week away from hearing a major proposal on how RIAs should be regulated by the SEC, which might blunt some of the impact of the brokerage world's master plan to use FINRA as a blunt instrument. Stay tuned...
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