Explore TAG Advisory Services’s latest blog posts, expert advice, news, and commentary. Learn more about the features of our innovative blog here.

PTE 2020-02 Compliance: Avoiding Five Common Mistakes

It’s hard to be 100% compliant as a financial advisor in today’s heavily regulated environment! Not only are the SEC and state regulators looking over your shoulder, but now the Department of Labor may soon start enforcing its new rule, PTE 2020-02, which covers investment advisors and brokers. The new rule is meant to align with the SEC’s Regulation Best Interest, and is one more thing to add to your compliance checklist— which means even more tracking, documentation, and paperwork! Broker Dealers and their representatives must have met most of the conditions of PTE 2020-02 by February 1, 2022. These include the written acknowledgments of fiduciary status by both the BD and the representative, disclosure of conflicts and compensation information, the implementation of policies and procedures to mitigate or eliminate conflicts, and annual reporting and certification of compliance. The rest of the PTE’s conditions, those relating to documenting and disclosing specific information regarding rollover recommendations, goes into effect on July 1, 2022. Read the article to make sure you remain compliant.

Most financial advisors are not living up to their fiduciary responsibilities when it comes to retirement accounts. If you’re dreading the increasingly complicated regulatory landscape and the extra time required to stay compliant in all aspects of your business, talk to TAG about how we can work together to free up more of your time.

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The Impending Succession Cliff

Consider these statistics from Cerulli, which, no matter how many times we see them reported, never seem to get any better:

  • Nearly 40% of industry advisor headcount will retire in the next decade
  • Of those, 26% are unsure of their succession plan
  • 71% say finding qualified buyers is a major challenge in succession plan preparation.

The succession crisis and talent shortage loom at the same time as advisor retirements accelerate, and many advisors are starting to wonder if a profitable retirement is even possible. In this guide, Cerulli researchers discuss the implications for today’s advisors, as well as some helpful insights to help prepare for the future, among them:

  • Start the process early because it will likely take longer than anticipated
  • Determine priorities when evaluating a potential successor
  • Pair junior and senior advisors together in client meetings to build rapport and ease the transition experience for clients
  • Remain actively engaged in the process. Training a successor is an ongoing, daily commitment.

Also included in the report (on pg. 6) is an interesting checklist of Potential Succession Plan Pitfalls.

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Bridging the Gap: Transgenerational Wealth Planning

Transgenerational planning is a holistic approach to moving your financial assets, real estate and personal property from today to future heirs: not just your children, but your grandchildren and their heirs. It’s estate planning done with multiple generations in mind.

In this video, we present a broad overview of available strategies and encourage you to reach out to your TAG advisor to help create a plan specific to your personal situation.

Why Should You Plan Ahead?

First, there are a few reasons why it makes sense to plan ahead. Advance planning allows you to:

  • Protect your assets: Make sure no unintended recipients - such as the tax man or an estranged in-law - get their hands on your assets.
  • Maintain your current standard of living: It allows you to maintain your...
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As advisors start to ‘age out,’ firms look to step up succession planning

Studies show that most small advisors — particularly solo practitioners — have no successor to fill their shoes, nor very good prospects for selling their business to someone else. Whether it’s the lack of a clear path forward, fear of uncertainty, analysis paralysis, or some other stumbling block, it’s evident that many, if not most, independent or small firm RIAs are not taking their future into their own hands.

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Failing to Plan = Planning to Fail

Business Continuity and Succession Planning is Critical to Protecting Your Business

Financial advisors are often so focused on doing what’s right for their clients in terms of planning for retirement and risk management that they neglect to do the same for themselves. Whether it’s because of the belief that there’s still plenty of time for that “later”, or because there are not enough hours in the day, or because they simply don’t want to face a future without a fulfilling career, a delay in planning can lead to disaster. 

Simply put, without a business continuity plan in place, there is a very real possibility that a sudden unforeseen triggering event could cause the value of your practice to plummet overnight, putting your clients, your family, and yourself at risk.

However, be it illness, disability, death,...

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10 Reasons To Sell Your Practice Now – Part II

As we said last time, when it comes to selling your financial advisory practice, timing is crucial. But waiting for the perfect time to sell your practice may prove costly. We are experiencing market volatility not seen in over a decade, and you might be thinking about what’s happening to the value of your largest asset: your business. While the continuing bull market is currently still roaring, reversion to the mean is inevitable and by then it might be too late. 

If you haven’t already done so, now is the time to safeguard the value of your practice so you can remain on course for your own retirement. Part II of our series lists our next 5 reasons to sell your practice now -

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Deloitte’s 2022 Investment Management Outlook

Pandemic-driven market volatility aside, the investment management community weathered a stormy 2021 fairly well. In the new year, experts predict that investment management firms able to develop strong talent models, make operational improvements, align with stakeholder expectations, strengthen culture, and deliver on their leadership’s vision should see success. Read about other key findings in Deloitte’s 2022 investment management outlook.

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10 Reasons To Sell Your Practice Now – Part I

When it comes to selling your financial advisory practice, timing is crucial. But waiting for the perfect time to sell your practice may prove costly. As we experience market volatility not seen in over a decade, you might be thinking about what’s happening to the value of your largest asset: your business. While the continuing bull market is currently still roaring, reversion to the mean is inevitable and by then it might be too late. 

If you haven’t already done so, now is the time to safeguard the value of your practice so you can remain on course for your own retirement. Retire on top and start your succession plan now. It’s an emotional milestone for sure, but one that shouldn’t be put off for too long for a number of reasons. In part 1...

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Choosing A Successor: 5 Lessons For Financial Advisors That We Learned In Our Own Succession Planning Process

Starting a new business and building an enterprise takes time, especially in the wealth management sector. Too many entrepreneurs focus entirely on building their books and realize far too late that they also need to think about a succession plan. Yet succession plans enable wealth managers to future proof and protect their businesses. This article features five important lessons learned by the founder of a firm that has counseled financial advisors and firm owners on how to navigate the succession planning journey.

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Why is it so Difficult to Find the Right Successor?

We all know we should have a succession plan in place - for now, for next year, or next decade - but why is it so difficult to find the right successor for your practice? In our discussions with numerous advisors over the years, we’ve heard many reasons, among them: 

It’s Hard to Let Go

First let’s acknowledge that, especially for sole practitioners, your practice is your baby and no one is ever good enough to look after your baby except you! But at some point you will need to hand over your book of business to someone else and that “point” is coming sooner rather than later for most financial advisors practicing today, many of whom do not have a family member or associate who is willing to take over. So where can you turn?

The process of transitioning your practice can be complicated and hard. Add to that the...

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