With Sen. Dodd set to introduce a long-awaited proposal to overhaul how the financial services industry does business with the public, you might want to sit up and pay attention. SEC Chair Mary Schapiro seems to indicate in speeches that she favors one, “harmonized” regulatory system, in which every financial service pro is a fiduciary. That scares some people. more

If you’ve got clients who have had a rough couple of years income-wise, now might be the time to dump that old, annoying spouse. According to Crain’s New York Business, bankers and other financial types who suffered in 2008 and 2009, this is the time since their earnings are down and the alimony would therefore be less. “Unlike stocks, when it comes to divorce, you want to buy high and sell low,” says one lawyer. “These are the low-earning years.” more

You would think so, judging from a story in today’s New York Times, the house organ of the left wing of the Democratic party. This story tells the same old saga: Wirehouses are all sales and no financial planning. Funny thing, I know a slew of wirehouse advisors who are in fact ethical. But, the independents, hybrids and fee-only RIAs sure do love to grind an axe on this subject. more

In December, the House of Representatives unleashed — or tried to — a new era of financial reform by passing the Consumer Protection Act of 2009. If passed and then signed, it would turn Wall Street as we know it upside down. Why? For one, it would make broker/dealers and their reps fiduciaries. more

By a 4 to 1 vote, the SEC today “reformed” money market funds — to make them safer for you and me. But, thanks to Chairwoman Mary Schapiro, if your clients’ money market funds are threatening to break the buck (as happened last year during the crisis), the board of the fund may elect to suspend redemptions. Okay, so now the SEC can decide when your client may take his or her money out of an investment? (Think of this as auction-rate-securites rulings in reverse — the ones that SEC made that forced brokerages to disgorge frozen ARS assets to retail investors.) more

This opinion — negative — from Brad Hintz, a senior analyst with Bernstein, is about as blunt an opinion as you’ll get. It’s about the Charles Schwab Corp.’s “surprise” (as Hintz puts it) equity offering to grow its retail bank. more

Remember when the institutional side of the financial houses used to look down on retail registered reps? They may still, but, gosh, how times have changed. more

What’s wrong with the hybrid model — being both a Series 7 and IAR of an RIA? Citi Personal Wealth Management advisors want to know. Hybrid FAs there say they are being forced into a pure RIA model, even if it be more expensive for the client. The new comp plan (team agreement) has yet to be disclosed by management, say employees of the bank. But they did say that they know they will be penalized (i.e. lower payout) on transactions. Several large FAs have left last week, two CPWM FAs told me. more

Sure, retirement looks a bit different for many of your clients after last year’s market plunge. But with the recent equity market surge off of March lows, should you make new adjustments? And if so, what? more

Remember, earlier this year, when Goldman Sachs reported great profits? CEO Lloyd Blankfein advised employees not to show off their money, especially given that many other Americans were suffering in a recession not seen since the 1970s. Well, so much for the boss’ advice. more