Dont throw the baby out with the bath water.That, essentially, is the message from Vanguard Chairman John Brennan to the Securities and Exchange Commission, in response to the SECs plan to change a rule governing money market funds - making Vanguard the first major mutual fund company to protest the proposed change.In response to the subprime crisis, and the apparent failure of ratings agencies to properly grade the securities, the SEC is proposing shifting the responsibility for assessing short-term debt from Moodys, Standard & Poors and Fitch, to squarely on the shoulders of asset management firms.That would be a mistake, Brennan argues, that could harm investors in the $3.5 trillion money market mutual fund industry.It is our view that the proposed elimination of ratings would remove an important investor protection from Rule 2-a7, weaken investment standards and, potentially, pose a risk to the long history of stability of the $3.5 trillion money market fund industry, Brennan wrote in a letter to the SEC.Ratings, even if occasionally imperfect, protect investors by establishing a uniform, minimum credit quality for all money market funds. Removing that investor protection is akin to outlawing seat belts.
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Back in December 2023, Wall Street was hoping for rate cuts early and often. But as of May 2024, "higher for longer" seems to be the new policy — at least for now.
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The merger "will fundamentally transform the RIA ecosystem," tru CEO Craig Stuvland says.
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Advisor advocates say they are beginning to look to civil courts and other FINRA alternatives to get erroneous customer complaints removed from their clients' online records.
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Higher expenses from the record headcount of financial advisors and a continuous stream of recruits and acquisitions are investing in the firm's future earnings, though.
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You'd think making $1 million a year for your firm would be considered a lot. But advisors at that level last year have to bring in a bit more to maintain their take-home pay.
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A homeowner in New York asks how to make sure her apartment goes to her kids after she dies — and not to Medicaid.
April 30