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An Investment Billionaire Resigned Another Leadership Role In His Shaken Up Empire (Wealth Management)
Nicholas Schorsch, whose independent broker/dealer empire has been shaken up over the last few weeks, stepped down from his role as executive chairman of RCS Capital. Mark Auerbach, the lead independent director of RCAP, will take over, reports Diana Britton.
Earlier today, RCAP shares were up 5% following the announcement.
Back in October, RCAP's sister company announced a $23 million accounting error - which shook up the Schorsch empire. Wall Street analysts last week were calling for his resignation as chairman of RCAP.
Pershing Has To Pay $3 Million Over "Supervisory Failures" (Financial Planning)
FINRA has fined Pershing $3 million for "supervisory failures" and for violating the SEC's Customer Protection Rule, reports Charles Paikert.
"According to FINRA, the Jersey City-based custodian failed to maintain adequate reserves to meet its reserve deposit requirements with reserve deficiencies ranging from approximately $4 million to $220 million from November 2010 to August 2011," reports Paikert.
Additionally, the firm failed to obtain and maintain physical possession or control of customers' fully paid and excess margin securities - which put funds and securities at risk.
Two Advisers Have To Pay $6.3 Million For Selling Hedge Funds Linked To Madoff (Investment News)
"Two investment advisers must pay more than $6.3 million in fines and restitution for misleading clients whose money was invested in hedge funds linked to Bernie Madoff," reports Liz Skinner.
So far, approximately $10 billion - or 60% - has been recovered for those involved in the Madoff's ponzie scheme.
Female CFOs Are Less Likely To Do Risky Business Tax-Dodging (Reuters)
Female CFOs in the US are less likely to take up high-risk tax-dodging strategies than male counterparts, according to a study by the American Accounting Association, reports Kevin Drawbaugh.
"The chances that a company would adopt a risky tax shelter were 17.4 percent lower with a female CFO," according to the study, "citing an academic analysis of 92 cases win which a woman replaced a man in that key executive role," reports Drawbaugh.
This has both positive and negative sides, according to professor Qiang Wu. Firms can suffer from risky tactics, but aggressive tax avoidance has been "highly popular" in many major US firms.
HOWARD MARKS: Lower Oil Prices Eventually Make For High Oil Prirces (Advisor Perspectives)
"In other words, lower oil prices - in and of themselves - eventually make for higher oil prices," writes Howard Marks.
Marks notes that many investors focus to much on what has happened (i.e. the oil price drop), and not enough of what will happen afterwards (i.e. the consequences of the oil price drop.)
He believes that there could be "self-correcting" three aspects of the oil price drop: 1) a decline in gas prices will get people to drive more, which will increase demand for oil. 2) a decline in oil prices negatively impacts drilling - reducing additions to supply. And 3) the decline in price of oil leads producers to cut production.