Top RIA Compliance News Articles for the Week of October 8th, 2021

    1. Three Concepts Every Advisor Must Know About Strategic Marketing (Author – Gordon Abel, WealthManagement.com)

Gordon Abel discusses the three main concepts advisors need to consider in terms of strategic marketing.” Starting with “content is king,” he discusses the importance on creating valuable content and leveraging an editorial calendar. Abel states, “Having a consistent social media schedule—and sticking to it—is critical to maintaining a strong digital presence.” Second concept dives into understanding the content your audience is interested in and the medium in which they prefer to consume it. The final of the three concepts highlights the importance of leveraging and understanding metrics as they relate to your marketing goals. Abel generally recommends, “reviewing KPIs at the first of every month in order to have enough activity and volume.”

    2. SEC to Require More Admissions of Wrongdoing (Author – Melanie Waddell, Think Advisor)

According to a recent article by Melanie Waddell, “SEC Enforcement Director Gurbir Grewal said Wednesday that the agency will return to an Obama-era environment of requiring firms, in certain circumstances, to admit wrongdoing.” Grewal stated, “If there is egregious conduct and a chance the person could have the opportunity to serve at the highest levels of a public company, we may well seek an officer and director bar to keep that person from being in a position to harm investors again.” Stay tuned.

    3. SEC Chief To Wall Street: The Everything Crackdown Is Coming (Robert Schmidt and Ben Bain, FinancialAdvisor)

Securities and Exchange Commission (SEC) Chief Gary Gensler is on track to propose one of the most ambitious agendas the agency has ever seen, ruffling feathers in the process. Gensler wants to move forward with around 49 proposals on a wide variety of topics, but many are wondering if it is too much, too soon. There is no indicated focus on certain topics, but gamification, crypto-currency, and climate change disclosure are sure to be at the top of the list.

    4. Schwab’s Clark, Fidelity’s Canter challenge Kitces over custody fees (Author – Jeff Benjamin, InvestmentNews)

Jeff Benjamin discusses the recent exchange between Michael Kitces and custodian executives regarding Kitces’s view on custody fees. Earlier this week during a panel discussion at the InvestmentNews RIA Summit, executives were asked their thoughts on Kitces’ proposed reconstruction of the custody fee model. Several extended an invitation to debate the matter with Kitces himself, which he accepted via Twitter along with a reiteration of his stance. David Canter, executive vice president of the RIA segment at Fidelity Institutional, stated, “I’m happy to come on and talk to Michael Kitces in a debate, because I think he’s asking the wrong question.”

    5. DOL Opens Door for More ESG Investments in 401(k)s (Author – Bernice Napach, Think Advisor)

In this article, Bernice Napach discusses the new rule proposed by the Department of Labor (“DOL”) regarding 401(k) plans. The rule is titled Prudence Loyalty in Selecting Plan Investments and Exercising Shareholder Rights and aims to make it easier for 401(k) plans to make environmental and social conscious decisions when choosing investments. Ali Khawar, acting assistant secretary for the Employee Benefits Security Administration, said that “A principal idea underlying the proposal is that climate change and other ESG factors can be financially material and when they are, considering them will inevitably lead to better long-term risk-adjusted returns, protecting the retirement savings of America’s workers.”

Don’t forget to check out last week’s top RIA compliance news articles that focus on Form CRS, state regulator’s enforcement actions in 2020, compliance tips for advisors dealing with digital assets, and expected regulatory changes.