Insurable Interest Canadian Insurance Blog

What You Need to Know The Fed move suggests the bank isn’t alarmed by a recent inflation uptick. Wall Street traders sent stocks to fresh all-time highs as the Federal Reserve signaled it’s on track to cut interest rates for the first time since the onset of the pandemic. In a historic move, the S&P 500 topped 5,200 on speculation that the end of the most aggressive Fed hiking cycle in a generation will keep fueling corporate America’s profits. Gains in equities were almost broad-based, with areas that have been lagging this year — like small caps — rallying. Short-term Treasurys outperformed, with traders now seeing higher odds of a first rate cut in June. Fed officials maintained their outlook for three cuts this year and moved toward slowing the pace of reducing their bond holdings, suggesting they aren’t alarmed by a recent uptick in inflation. While Jerome Powell continued to highlight officials would like to see more evidence that prices are coming down, he also said it will be appropriate to start easing “at some point this year.” “The sum total of this ‘no news is good news’ press conference is that markets continue to have a green light...

Raymond James Financial announced Tuesday that Chief Financial Officer Paul Shoukry has been appointed president, effective immediately, and he is expected to become the firm’s next CEO sometime during fiscal 2025. Once the planned succession process is complete, Shoukry would become the fourth chief executive in the company’s history, following Paul Reilly in the role. Reilly, according to the firm’s announcement, will remain on the company’s board as executive chair, while Shoukry will retain his current responsibilities until he transitions to the CEO role. Commenting on the news, Reilly called Shoukry an “exceptional leader” and a “major contributor to Raymond James’ steady growth and financial stability.” He added that Shoukry’s experience as the firm’s CFO, as well as his experience overseeing the key banking segment, position him well to maintain Raymond James’ commitment to keeping the financial advisor at the center of the business plans. “In addition to Paul, we have an outstanding leadership team who similarly embrace our vision for the future and are well-equipped to meet the demands of a dynamic marketplace,” Reilly said. As part of the firm’s succession plans, Raymond James also announced other key leadership changes and appointments. Jeff Dowdle has announced that he will...

What You Need to Know The accounts facilitate a wide range of philanthropic behavior. Donors know that they will receive the greatest tax benefit possible when contributing simple assets like cash or stock. DAFs can help ease the year-end charitable planning rush advisors face. As more donor-advised fund accounts have been created over the past decade, a growing consensus has emerged that many parties benefit from them. The independent DAF Research Collaborative recently released a study that concluded that DAFs “facilitate a really wide range of philanthropic behavior.” A colleague just spoke with a financial advisor who opened his first DAF for a client and indicated that he would open more for his other charitably minded clients. He determined that there are five groups that benefit once a DAF is created: Charities welcome grants from donors who have established DAF accounts. Numerous studies have shown that DAF grants are significantly larger than direct donor contributions of cash or appreciated securities to the charities. This can be attributed to these donors receiving their tax deductions when they contribute to the DAF sponsor and knowing that these assets can only be granted to charities. With recent global events, economic stress including inflation...

Additionally, it is an advisor’s responsibility to immediately connect with a client’s spouse or designated “trusted contact” upon observing signs of declining mental capacity. While they might already be aware, family members often fail to fully comprehend the seriousness of the situation due to how close they are to the individual.  Signs to watch for include repetitive questioning, hesitation in decision-making, trouble articulating thoughts and unusual impulsiveness. This should signal the spouse or designated “trusted contact” to begin gathering passwords and essential documents to prevent potential loss or tampering. Addressing Family Dynamics Navigating animosity among family members following the passing of a loved one can pose challenges for advisors, but the most important thing to remember is the fiduciary duty to each client. Even in the event of clients’ passing, ensuring the respectful execution of their wishes remains the advisor’s responsibility. Maintaining transparent communication with all family members involved serves to dispel any uncertainty regarding a client’s intentions.  Additionally, having likely developed a longstanding relationship with the family and personally remembering when they were a cohesive unit, advisors can urge them to prioritize mutual respect, communication and collaboration. This is essential not only in the immediate aftermath but also for...

What You Need to Know The lawsuit claims that the financial services company induced three advisors to take clients upon departing. Assets under management went to $0 overnight when the advisors left, the complaint contends. A Kentucky wealth manager has accused LPL Financial of running a “classic corporate raid” against his firm, which had been an LPL affiliate for years, to retaliate when he sought to find a new broker-dealer and the relationship soured. In a case recently moved from state to federal court in Kentucky, Lamkin Wealth Management and Louisville Wealth Management (referred to together as LWM) seek redress for what they call LPL’s “improper, illegal and unjustified actions” against the firm. “Simply put, LPL orchestrated, assisted and executed a classic corporate raid against LWM, its own affiliate, by the actions of three of LWM’s employees, who were at the time also affiliated with LPL,” the suit contends. LWM had over $451 million in client assets under management on Dec. 5, 2018, when three LWM financial advisors left without notice and took client files with them, according to the suit, and was left with zero AUM the next day. LPL induced the three to leave “en masse, in the middle of...