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And … What’s Up at the Bank of America?
http://www.CertifiedMedicalPlanner.org
A Vintage ME-P
According to E. Dilts, BoA is making it harder for brokers to take some of their clients with them when they leave Merrill Lynch-specifically, clients that were referred to the broker by a Bank of America branch.
Brokers in recent months have been asked to sign contracts saying that if they leave Merrill Lynch, they can’t take the names or phone numbers of those customers with them, because those clients belong to the bank.
Lawyers said this policy chips away at the decade-old truce among brokerages known as the Protocol for Broker Recruiting.
The agreement was meant to end the continual and costly legal battles between brokerages and their brokers over who had the right to keep clients, and allows departing brokers to take client information including names and phone numbers with them.
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Stock Broker versus Brokerage House
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Assessment
So, who does the broker [er-ah! financial advisor] really work for – the [physician] client or the brokerage house? And doesn’t this make your account just a portion of their “book of business?”
Talk about advice versus product sales?
More:
- Is Mother Merrill Being “Dismantled” by Bank of America?
- Merrill Lynch Headcount Flat, But Advisors Less Productive in Q3
- Mother Merrill Reshuffles Management Team
- Mother Merrill’s Extreme Makeover
Channel Surfing the ME-P
Have you visited our other topic channels? Established to facilitate idea exchange and link our community together, the value of these topics is dependent upon your input. Please take a minute to visit. And, to prevent that annoying spam, we ask that you register. It is fast, free and secure.
Even More:
- 4 Advisor Moves That Shouldn’t Be Legal
- Understanding Traditional Full-Service Stock Brokers
- Finding a Fiduciary Financial Advisor
- Mortgage Investors Join Outcry Against Banks
- Merrill Lynch Investigated for CDO Deal Involving Magnetar
- Enter the CMPs
Conclusion
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Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com
OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:
- CLINICS: http://www.crcpress.com/product/isbn/9781439879900
- ADVISORS: www.CertifiedMedicalPlanner.org
- FINANCE: Financial Planning for Physicians and Advisors
- INSURANCE: Risk Management and Insurance Strategies for Physicians and Advisors
- Dictionary of Health Economics and Finance
- Dictionary of Health Information Technology and Security
- Dictionary of Health Insurance and Managed Care
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Filed under: "Ask-an-Advisor", Ethics, Experts Invited, Investing, Risk Management | Tagged: Bank of America, E. Dilts, Merrill Lynch, Protocol for Broker Recruiting, stock brokers |
The Leading Business Education Network for Doctors, Financial Advisors and Health Industry Consultants 
Fiduciary Rule
Stock Brokers DO NOT work for you. SBs work for their firms. Repeat: SBs do not work for you. They earn commissions and “eat what they kill.” SBs are NOT fiduciaries.
The “F” Duty
The legal duty of a fiduciary is to act in the best interests of the client or beneficiary. A fiduciary is governed by regulations and is expected to judge wisely and objectively. This is true for Investment Advisors [IAs] and RIAs; but not necessarily stock-brokers, commission salesmen, agents or even most financial advisors. Doctors, lawyers, CPAs and the clergy are prototypical fiduciaries.
More formally, a financial advisor who is a fiduciary is legally bound and authorized to put the client’s interests above his or her own at all times. The Investment Advisors Act of 1940 and the laws of most states contain anti-fraud provisions that require financial advisors to act as fiduciaries in working with their clients. But, following the 2008 financial crisis, there has been substantial debate regarding the fiduciary standard and to which advisors it should apply.
In July of 2010, The Dodd-Frank Wall Street Reform and Consumer Protection Act mandated increased consumer protection measures (including enhanced disclosures) and authorized the SEC to extend the fiduciary duty to include brokers rather than only advisors, as prescribed in the 1940 Act.
However, as of 2014, the SEC has yet to extend a meaningful fiduciary duty to all brokers and advisors, regardless of their designation.
So, I repeat myself:
Stock Brokers DO NOT work for you. SBs work for their firms. Repeat: SBs do not work for you. They earn commissions and “eat what they kill.” SBs are NOT fiduciaries.
Dr. David Edward Marcinko MBA CMP™
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