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SEC’s AI Rule Could 'Weaken' Advisors’ Fiduciary Duty, IAA Attorney Argues

Wealth Management

The advocacy group for advisors argued the rule is overly broad. In contrast, the outgoing director of the SEC's Investment Management Division said the degree of risk in AI’s proliferation is “obvious.”

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Extracting Actionable Takeaways From The SEC’s Staff Bulletin Regarding An RIA’s Standard Of Care

Nerd's Eye View

There is a general understanding that investment advisers have a fiduciary relationship with their clients – in other words, that they are required to act in the client's best interests. These 3 components in practice make up a core part of the adviser's fiduciary duty to their clients.

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RIA Code Of Ethics: Important Nuances To Note In Relatively Straightforward Requirements

Nerd's Eye View

All investment advisers are fiduciaries that owe a duty of care and loyalty to their clients, and, in an ideal world, advisory firms and their staff would abide by these requirements without the need for a prescriptive code of ethics.

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Advisory Annuities and the Role of Fiduciary Duty

Wealth Management

Overcoming the RIA/Annuity disconnect by addressing common financial advisor objections.

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Weekend Reading For Financial Planners (January 20-21)

Nerd's Eye View

Also in industry news this week: While the total number of RIA M&A deals in 2023 fell short of a record-setting 2022 amidst an elevated interest rate environment, continued interest from private equity firms and creative deal structures could boost deal flow in 2024 While the SEC authorized 11 "Spot" Bitcoin ETFs last week, comments from chair (..)

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Research links: considering all factors

Abnormal Returns

blog.validea.com) How anti-ESG movements could be contrary to a fiduciary duty. (klementoninvesting.substack.com) How ChatGPT, and other LLMs, will change how investors do their work. nytimes.com)

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Tips From the Pros: Powers of Appointment And Fiduciary Duties

Wealth Management

Redd examines litigation in recent years that’s exposed a possible exception to the widely held belief that exercising a power of appointment isn’t a fiduciary act.