News and Articles

Issues in Consolidated Investment Reporting for Customers

Securities firms frequently offer customers consolidated financial account reports, prepared by third party entities, that provide clients with valuation and performance information for all of their assets, including those held away from the firm. Because such services (referred to as “consolidated reports” or “consolidated reporting”) are becoming increasingly commonplace, securities firms risk losing a competitive edge by not offering such statements or reports. However, regulators have placed Member firms on notice that consolidated reporting raises a host of potential regulatory and compliance issues. This article will synthesize some pertinent guidance on the use of third party consolidated reporting and outline some best practices for their use. ...read more

Understanding and Avoiding the Risks of Life Insurance Premium Loan Financing

Premium financing provides an avenue for high net worth individuals with substantial assets to obtain life insurance for estate planning purposes, collateralized by the insurance policy itself or other assets. It, therefore, allows individuals to maximize the face value of insurance while minimizing the current expense of paying premiums. Although there are several benefits of premium financing, including obtaining insurance without having to liquidate other assets, and certain estate planning / tax benefits, premium financing for estate planning purposes can pose significant risks that could have devastating effects on insureds. This article aims to raise awareness of such risks and provide strategies to avoid some of them. ...read more