The oldest RIAs are 85. How did they become a $144T industry?

What we drew from this source

The claims Via News extracted from this document. We point to the source; we don't replace it.

• High standards of business morality exacted by securities laws do not permit an investment adviser to trade on market effect of their recommendations without fully and fairly revealing personal interests to clients

  80% confidence

• A society will be wealthiest if those who act as fiduciaries self-enforce and follow fiduciary law principles

  80% confidence

• Investment firms in 1940 had common interest in ridding industry of wrongdoers who had tarnished the reputation of the entire industry

  80% confidence

• Regardless of whether enforced by law, social rules, or cultural pressures, fiduciary rules are a condition to the long-term well-being of a human society

  80% confidence

• SEC vs. Capital Gains Research Bureau decision clarified that antifraud provisions in Advisors Act amount to a fiduciary obligation

  80% confidence

• Growth of RIA model has little to do with fiduciary obligation directly, but rather consumers prefer helpful advice over being sold stuff

  80% confidence

• A society whose fiduciaries do not feel compelled to be trustworthy will in the long run be the poorest

  80% confidence

• If you serve clients well and understand their objectives, you end up with multigenerational clients

  80% confidence

• There is no necessity of reviewing in detail the many unhealthy practices which this legislation is designed to eliminate

  80% confidence

• RIAs remained a quiet niche side of the industry for a long time until custodial platforms emerged in 1990s

  80% confidence

• Howe and Rusling believed in the importance of being a fiduciary and putting clients' interests above their own, and wanted to validate that by registering with SEC

  80% confidence

• Eventually, the rule should be that the entire firm has to be fiduciary in order for advisors to be fiduciary

  80% confidence

• Technology that made it scalable to manage portfolios and collect fees led to RIA model taking off

  80% confidence

• Howe & Rusling receives emails and calls every day to change their independent status but they are determined to stay independent

  80% confidence

• Disclosure in such situations is needed to preserve climate of fair dealing essential to maintain public confidence in securities industry and preserve economic health of country

  80% confidence

• The 1940 legislation was result of painstaking study where an agreement was reached between those in the industry and SEC members

  80% confidence

• Howe & Rusling is really leaning into the fact that they are independent and believe strongly in human connection

  80% confidence

• The tipping point for RIA growth came in the 1990s with rise of personal computers, digital brokerages and custodial tech systems

  80% confidence

• Disapproves of the idea that someone could be a fiduciary one minute and take their hat off and be a stockbroker or insurance salesman the next minute

  80% confidence

• When thinking of the horrible Depression years, unsure how he survived and wouldn't do it to a dog

  80% confidence

• The attitude of investment trust industry and investment advisers in urging federal supervision is most commendable

  80% confidence

• Howe and Rusling would be very proud of being one of the earliest RIAs and wonder what took everyone else so long

  80% confidence

• The 1940 laws have enduring importance because they introduced the concept of a fiduciary standard or fiduciary obligation

  80% confidence

• Investment advice laws represent an area where fiduciary laws seem to encroach on other principles such as implied contracts and freedom from non-specific regulation

  80% confidence

• Some firms may be finding ways to skirt fiduciary rules by having CFPs provide advice under fiduciary duty then standing down as salespeople step in under lesser standard

  80% confidence

Data points we hold from this source