Keyword: investment policy statements

This Week on NAPA Net

Last week’s news and commentary in the NAPA Net Daily included DOL’s $1.266 million fine levied on an advisor; the fastest growing advisory channel; use of investment policy statements among advisors; more in-depth reports on sessions at the 401(k) Summit; and increasing attention being paid to passive strategies.   Read More

Few Advisors Use Investment Policy Statements for All Clients

While not an apples-to-apples comparison for DC plans, it’s interesting to note that only 39% of advisors surveyed by Russell in their recently released quarterly report used investment policy statements for all their clients. While most used them, 21% of the advisors surveyed didn’t use investment policy statements at all. Reducing risk was the major reason investors strayed from their investment policy, with a majority who did so relying on social media, friends and family.   Read More

Avoiding Financially Dysfunctional Behavior

One of the challenges investment professionals face is figuring out effective ways of helping some clients become smarter about their decisions. This is key to offsetting what Nobel Laureate Robert C. Merton calls “financially dysfunctional behavior.” Merton was the keynote speaker at a gathering of researchers, educators, financial advisers and regulators to discuss how household financial decisions might be improved through a combination of better education, advice and oversight of business practices.   Read More

Plan Sponsor Asleep at the Wheel

Many employers get complacent about benchmarking fees, understanding the law and documenting their activities. The Tussey v. ABB case illustrates how one sponsor that was asleep at the wheel paid for those lapses. Advisors can use this to wake up clients and prospects who think it will never happen to them – why take that risk?   Read More