Investors still prefer to entrust their money with humans over robots
Investors would rather give their money to humans than robots (Wealth Management)
Research from Charles Schwab shows two-thirds of investors would still rather have their portfolio constructed by a financial advisor instead of a computer algorithm. Millennials and Generation Xers were most receptive to technology, with 40% preferring to use the robots, compared to just 24% of those aged 69 and older. Interestingly, it was the millennials who most preferred human interaction when planning for a life event such as marriage or having a child.
Brokerage firms are spending lots of money on lobbying (Investment News)
Brokerage firms are once again the big spenders on lobbying interests. Investment News reports, "The Securities Industry and Financial Markets Association spent $1.98 million on lobbying in the first quarter," which was up 6.5% versus a year ago. That number was more then double the less than $1 million combined amount spent by the National Association of Insurance and Financial Advisors ($721,220) and the Financial Services Institute ($213,524).
FINRA is taking a tougher stance against fraud (Financial Planning)
FINRA has made big changes to the National Adjudicatory Council's sanctions guidelines manual in order to better protect clients and deter future misconduct. Financial Planning notes, "Sanction recommendations increased from one to two years, and adjudication panels were advised to lean toward barring individuals in cases involving fraud" in some cases. The guide is not meant to offer fixed penalties, instead should be used in determining appropriate action.
Merrill Lynch creates a new team (Think Advisor)
Merrill Lynch announced a new team has been created, focusing on retirement investments and income. Think Advisor says, "The program aims to improve the ability to match clients' life priorities and goals with their investment and income solutions," and "will focus on matching clients with retirement specialists and annuities solutions." The group will be headed by Kirstin Hill, who joined Merrill in 1999 before becoming part of the Global Wealth Management operations in 2007. Hill will be reporting to David Tyrie, the head of retirement and personal wealth solutions.
Daniel Gallagher resigns from his post at the SEC (Bloomberg)
Daniel Gallagher, a Republican member of the US Securities and Exchange Commission, announced he will be stepping down from his post after four years. According to Bloomberg, "Gallagher has been a critic of many of the rules required by Dodd-Frank." His resignation means the White House will have to replace two of the five commission members as Democratic Commissioner Luis Aguilar's term expires in June.