Products September 12, 2017

AxiomSL Launches Research Brief Series on Regulatory Challenges

Aimed at asset managers and advisers, the first in the “In the Know” brief series covers Dodd-Frank, the Financial Choice Act and more.
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Consistent with its mission to clarify complex regulatory issues on behalf of the asset management and broker/dealer industry, AxiomSL has launched “In the Know.” 

The first edition in this series of brief, informational articles covers the Dodd-Frank Act, the Financial CHOICE Act, and Securities Exchange Commission (SEC) Modernization Rules.

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Although the Dodd-Frank Act has long been in place, Congress is considering major amendments. Asset managers should pay close attention to sections of Title VII, which regulate the OTC derivatives business. This remains to be agreed upon and finalized between the SEC and CFTC.

AxiomSL points out that Title IV Reporting (Form PF) by private equity fund advisers has been proposed to be eliminated. Moreover, Section 619 could face repeal, as well. It adds, the Volcker Rule is likely to undergo a substantial revision with the FSOC indicating plans to draft revisions by year-end 2017. In regards to Title IX Reform, AxiomSL notes “the SEC and the Department of Labor (DOL) are working jointly to revise the fiduciary rule.”

In addition, the Financial CHOICE Act, under review by the Senate, aims to substantially rewrite the Dodd Frank Financial Services and Consumer Protection Act of 2010. Axiom says this would require SEC to incorporate economic analysis in its deliberations and enforcement matters. It would also “seek to employ these tools to strike the right balance between deterrence and discipline for securities fraud and protecting shareholders from the crimes of rogue corporate officers and employees.”

The publication also sheds light on SEC Modernization Rules adopted in October 2016 to heighten transparency of investment company reporting.

AxiomSL notes, “There is a requirement to prepare new monthly disclosure Forms N-PORT (Portfolio) and annual filing of Form N-CEN (Census) with the largest funds commencing compliance mid-2018. Current reports, including forms N-Q and N-SAR, are being retired as part of the implementation of these new reports. Failure to comply with requirements to maintain minimum high-quality asset compositions in portfolios, or the excessive investment in illiquid assets, will require that funds self-report these exceptions on the new Form N-Liquid.”

The firm also points out that new chairs have been appointed to the SEC and CFTC. Moving forward, AxiomSL says asset managers should expect a “review and possible revision of every rule enacted by the prior administration,” and an “increase in targeted enforcement, and enhanced coordination of regulatory agencies in the pursuit of common regulatory mandates including cybercrime, money laundering, bid-rigging and insider trading.”

The “In the Know” series is part of the firm’s comprehensive regulatory education program.

For access to the complete brief, visit AxiomSL.com. 

Products September 12, 2017

Edward Jones Aims For Half Its Advisers to Be Women

The firm hopes its relaunched gender and cultural diversity programs aimed at attracting and retaining people from more walks of life to the advisory industry can help to address a major national challenge. 
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Edward Jones recently announced the relaunch of a firm-wide network designed to help financial advisers who are women thrive in the business, whether they are new to the profession or industry veterans.

The network is called “WINGS,” short for the Women’s Initiative for New Growth Strategies. In joining the revamped network, advisers will gain various practice management tools, mentorship resources and “coaching designed to strengthen and advance female career trajectories at the firm.” Hundreds of people will staff the diversity effort, the firm tells PLANADVISER. 

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“At Edward Jones, more than one-quarter of our recruits are women, but the number should be higher,” observes Monica Giuseffi, principal of financial adviser inclusion and diversity at Edward Jones, while describing the new initiative she oversees. “As the dynamics of our workforce and the clients we serve continue to evolve, we must embrace diversity of thought, background and experience across our firm.”

Giuseffi and others have long been arguing this point, in reference to both the lack of representation of women and racial/cultural minority groups in the U.S. financial advisory field. She notes the relaunch of WINGS comes on the heels of a recent hiring pledge made by Edward Jones Managing Partner Jim Weddle, in June 2017. He was one of some 150 American CEOs to sign a “CEO Action for Diversity & Inclusion Commitment” to move forward and create a more diverse and inclusive work environment.

“Comradery, trust, people and confidence-building have always been the most important parts of Edward Jones’ culture,” Giuseffi says, noting she has some 16 years of personal experience with the firm. “With this relaunched program we are doubling down on the resources committed to make sure all our advisers and potential hires benefit from this culture.”

She agrees that the 15 years she spent in the field has given her an invaluable insight into the challenges faced by women advisers in the day-to-day. “Right now we see that just 19% of advisers in the U.S. are women,” she observes. “When you look at fields that intersect with the advisory space and see that 52% of accountants are women and 32% of attorneys are women, it really shows inclusion in the advisory industry is not satisfactory. At Edward Jones we aren’t shy about our goal for WINGS and the BRIDGE program, which offers very similar resources with the aim of supporting cultural diversity.”

Giuseffi concludes by stressing that the firm truly believes that improving diversity in its workforce will help draw new clients and improve the performance and resiliency of the firm for the long-term future: “Edward Jones’ goal for diversity is clear: We want 50% of our advisory staff to be women. We feel good not only about sharing that goal but also about our chances of getting to that point within the tangible future, and what it means for our business outlook. On the cultural inclusion problem, we want to see 33% diversity across the population of men and women who work as our advisers.”

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