Displaying items by tag: advisors

(New York)

The wealth management industry has a long-standing issue that has recently been re-highlighted by some new research studies. That issue is that financial advisors—who are overwhelmingly male—tend to have unconscious biases which lead to miscommunication, poor judgments, and bad experiences for female clients. According to Merrill Lynch, one of the big changes in household investing is the increasing involvement of women. For instance, women under 45 are twice as likely as average to be the financial decision maker in their home, and 4.5x more likely than women over 55 to consider themselves knowledgeable about investing. In meetings with heterosexual couples, advisors are still focusing most of their attention on men, which is frustrating to women. Male advisors also often mistakenly assume the couple’s finances are integrated and they are investing from the same account.

FINSUM: It is no surprise that the issues exist in wealth management, as they seem to be present in all industries. Our sector seems pre-disposed to the issue given the overwhelming majority of older male advisors.

(New York)

Something very interesting is happening in recruiting. While advisor movement slowed down right at the beginning of the pandemic, it has bounced back strongly in the last couple month. The reason why is that advisors are finding it easier to explore opportunities with new firms while they are working from home. Any advisor recruiter will tell you that calling a wirehouse broker at their branch is an almost impossible task as the office itself works as a gatekeeper. Even if you can get the advisor on the phone, it is taboo for them to speak about moving firms while they are in the office. Thus, the ability to take zoom calls from their comfort of their kitchen has opened the door to more recruiting since advisors are free to explore firms in-depth and with total privacy. Further, the lack of a need for offices has made advisors wonder if they need the infrastructure (and lower payouts) that come with being at a wirehouse.

FINSUM: The landscape for recruiting has changed overnight. No conferences, but no office gatekeepers either! It seems a great time for advisors to consider a move, and firms would be smart to put effort into recruiting right now as this is truly an unprecedented opportunity.

(Washington)

The reality of the political situation in the US is that markets and the media are betting that Biden is going to win the presidency. Many also think the Democrats have a fair shot at sweeping Congress and the presidency. If either eventuality happens, especially the latter, tax hikes look likely. Biden formally announced his plan to do so recently. Therefore, a rise in corporation tax and a hike in the top tax bracket back to Obama-era levels seems highly probable.

FINSUM: The tax hikes that seem most likely will create a host of considerations for high earners. For instance, a reversion to previous tax levels would change the utility of certain pass-through entities versus other types of businesses.

(New York)

New data is out showing which independents are gobbling up the most new recruits in the wealth management space. The overall picture emerging is that while April was a very slow month for changes, Raymond James and LPL are striding ahead of the competition through acquisitions and advisor recruiting. LPL has gotten 59 new recruits to join this year, while Raymond James has managed 20, worth $4 bn and $2.8 bn in AUM respectively. Some usual suspects have been absent so far this year. For instance, Advisor Group has lost more than 25 advisors to LPL in 2020 without announcing a single new advisor joining the network.

FINSUM: LPL and Raymond James have done a great job keeping their recruiting wallets open during this tough time. We expect the relationships they are building right now will keep their pipeline strong for the rest of the year.

The Paycheck Protection Program landscape has been beyond challenging for small business owners. According to COVID Loan Tracker, as of April 30th, only 10.2% of small business owners report actually receiving PPP loans. That compares to the 30% that say they have already received “approval” for the loan by the SBA. That is a huge lag when you are trying to pay employees.

However, for some, that is not even the biggest issue, as just applying itself is a major headache. Not only are the forms one must submit difficult, but many banks won’t let you apply if you are not a customer, so many are stuck in seemingly hopeless queues at giant banks. With that mind, below is a list of sources where you can apply WITHOUT being a customer.

1. COVID Loan Tracker has partnered with Fundera to offer its own PPP app. Applying with online lending platforms like Fundera increases your chances of success because they are connected to a multitude of lenders and only place your application with banks ready to process them. CLT can see in its data that online lending platforms have had very high success rates in getting PPP loans approved.

APPLY FOR PPP with COVID Loan Tracker/Fundera

2. First State Bank: https://1st.bank/ppp/
3. Banc First: https://www.bancfirst.bank/cares/ppp-apply
4. Eastern Bank: https://www.easternbank.com/ppp-request
5. People’s Bank and Trust: https://www.peoples.bank/ppp
6. TCF Bank: https://commercial.tcfbank.com/sbappp/s/application?

COVID Loan Tracker was started by small business owners Duncan and Rita MacDonald-Korth to help their fellow small business owners understand where PPP and EIDL money is flowing. We are empowering the business community and journalists with the data they need to keep the government accountable.