A Florida Money Manager Used $17 Million Of His Investors' Money As His Own Piggy Back
A Floridian Manager Used $17 Million Of His Investors' Money As His Own Piggy Back (Financial Advisor Magazine)
Elm Tree Investment Advisors LLC and its manager Frederic Elm have been charged with fraud by the SEC. The SEC stated that he used $17 million of his investor's money as "his personal piggy bank," according to FA Magazine.
"Elm misled investors about how he and his funds would use the investors' money and about how much he charged them in fees," says Eric I. Bustillo, director of the SEC's Miami regional office. "As a result, Elm was able to wrongfully take millions of dollars from investors without their knowledge."
Another Major Exec Just Left LPL Financial (InvestmentNews)
"LPL Financial's top recruiter on the East Coast, James Sorey, left the firm earlier this month, continuing a brain drain at the nation's largest independent broker dealer," reports Bruce Kelly.
LPL Financial had a tough year following compliance issues. And in October, LPL Financial Holdings Inc. stated that it expected to incur up to $23 million in charges ($18 million more than previously expected) in order to resolve undisclosed regulatory matters such as fines and restitution, reports Kelly.
Charles Schwab Expects That It'll Be A Volatile Year In FX Markets (Charles Schwab)
Charles Schwab analysts believe that the Fed will extend the time frame for rate hikes while lowering the expectation for the eventual peak in the Fed funds rate.
"In light of the uncertainty about the timing and pace of the shift in Fed policy, we anticipate 2015 will be a volatile year in the fixed income markets. Tighter Fed policy implies that real or inflation-adjusted interest rates are likely to rise," writes Kathy A. Jones.
"We suggest focusing bond portfolios on higher-credit-quality bonds, such as Treasuries and investment-grade corporate and municipal bonds with intermediate-term durations of five to 10 years. Riskier sectors of the market, such as high-yield and emerging-market bonds, are likely to experience significant volatility in the months ahead," adds Jones.
The Recent Energy Sector Job Cuts Are Just The "Very Early Innings" Of A Long Game (Advisor Perspectives)
Streettalk Live's Lance Roberts attributes the energy sector's employment issues to the oil price plunge, and warns that this is only the "very early innings of what is shaping up to be a long game."
"Not surprisingly, with rig counts being rapidly "shut-in" the rise in jobless claims are likely to continue in the near term. However, more importantly will be to watch the ancillary effects to employment elsewhere in the economy," he adds.
Advisors Need To Consider A Few Things When Working With Widows (Financial Planning)
The New York Life's "Loss of a Spouse" study found that women are far less prepared for the loss of their spouse than men are. Additionally, two-thirds of widows reported a "significant financial change" compared with only half of widowers, reports Kimberly Foss.
Consequently, Foss writes that advisors can do several things to help widows get back on the right track: they should give them time to grieve before diving into numbers, they should stay flexible, develop a plan for bills and paperwork, look beyond financial matters, transition from immediate tasks to long-term planning, take a team approach, and make retirement saving a priority.