To view this email as a web page, click
here.
Straight talk from the money editor
There's been a ton of news coverage about bitcoin; however, investors need to focus on a very serious issue called the "protocol for broker recruiting." What the heck is that, you ask? It's something that demands close attention and that could impact the relationship you have with your advisor. The protocol was created in 2004 by Merrill Lynch, Smith Barney and UBS Financial Services to reduce litigation costs created by attempts to prevent brokers from calling their former clients. Morgan Stanley joined the pact in October 2006. With the recent exit of some of the firms from the broker protocol, there are signs they are going back to war, not just with each other but with their own employees and with every other company in the financial services industry. And, in every war, there is collateral damage — and that means the investors. What will end up happening to clients is their trusted advisor will one day disappear and they will never know where they went or why. These firms will unceremoniously "assign" the client to a new advisor and effectively force them into a new relationship. While these financial service firms will argue investors can always change advisors on their own, the companies definitely will not inform clients of this choice. And you can be sure the companies will do everything they can to reduce the chances clients exercise this right. So, while investors wonder if they should invest their hard-earned money in bitcoin, there is a more serious issue taking place, and it means possibly losing your trusted advisor. Often, that's a person whom you trust more than that financial firm. For more stuff like this, please follow me on Twitter @jimpavia. |
|
How changes to protocol for broker recruiting could affect you
Some Wall Street firms have pulled out of an agreement that sets rules for when advisors change firms, putting a spotlight on clients' rights. |
The 'broker protocol' is good and should be strengthened
The best advisors help clients make decisions to achieve life goals, which is why it pains me to see the Protocol for Broker Recruiting start to unravel. |
Bitcoin smells like a bubble to CNBC advisor council
Thinking of investing in bitcoin? Think again, financial advisors say. |
Hedge fund conversions: A look under the hood
Hedge fund conversions are a growing trend. Here's an in-depth look at hedge fund conversion processes: upsides, downsides and tax implications. |
Torn between active, passive? Try 'core and explore'
Although some investors choose between active and passive approaches to portfolio management, there's a third option incorporating both: core and explore. |
Here's what you need to know before investing in bitcoin
Bitcoin is becoming more mainstream, yet there are still a number of barriers standing in the way of the cryptocurrency's legitimacy. |
Internet safety tips for retirees
Older Americans are becoming more digitally savvy, but with that comes the increased risk of becoming a victim of cybercrime. |
To hang on to boomer assets, advisors must court kids
Forward-looking advisors are retooling, recognizing tomorrow's clients will have different priorities and preferences than their baby boomer parents did. |
Cities where your nest egg will stretch the furthest
If you want to make your savings last, consider these places, where the cost of living (including housing, utilities and health care) is less than $45,000. |
Investors will never get the answer to 'Why now?'
'Attempts to understand why things happen are best done in hindsight, never before the fact or during ... ' |
 | Sharon Epperson | |  | Josh Brown | |
| Feedback We value your input—use our simple form to let us know what you think. Click here for Real-Time data and top stories on your desktop or mobile device. |
|
| 
© 2017 CNBC Inc. All Rights Reserved.
900 Sylvan Avenue, Englewood Cliffs, NJ 07632
|
|
|
