1) CPAs and other financial professionals are now considered fiduciaries under new regulations, requiring them to put their clients' interests first.
2) Record keeping is crucial to demonstrate that all work was conducted within compliance guidelines, including documenting all client meetings and the process for insurance transactions.
3) A lawsuit awarded $14.2 million to a plaintiff after two reputable firms provided dramatically different calculations for life insurance premiums to maintain the same benefits, illustrating the risks of relying on common industry practices. Proper application of prudent investor principles could have avoided litigation.
Insider Lease Agreements (Series: Fairness Issues in Real Estate-Based Bankru...Financial Poise
It is a common play in real estate to create a separate operating entity to serve as a tenant and execute a lease between the owner of the property and himself. Typically, this happens in assets which serve as a real estate-based business, such as a retail property. The structured enables the operator to reduce the taxable income of the business and also provide a liability shield for the property owner.
This arrangement can lead to some ethical issues, should the property owner become distressed. For example, is the lease amount above market and therefore being used to inflate the property valuation? Is rent actually being paid? Is there a proper lease in place or just an internal handshake? Attorneys need to understand the set-up in order to know what is in bounds and what is outside the lines.
To view the accompanying webinar, go to:https://www.financialpoise.com/financial-poise-webinars/insider-lease-agreements-2021/
This white paper examines the two primary sources of compliance obligations related to contracts: performance obligations and government regulations. For each source of compliance challenge, this paper identifies methods to improve compliance and contract management. Finally, this paper examines the kind of reporting that makes
Contracts create the network of relationships that allow organizations to thrive. Contracts generate revenue and control expenses. They allocate risks and responsibilities. Contracts create assets and liabilities. Contracts are the foundation of enterprise.
Compliance requirements touch every organization across industries. Regulations can lay down the rules of the road or impose barriers to business. Compliance is essential for success, like good brakes on a car.
This White Paper is written by Paul J. Smith, AIF and Gary Sutherland, CIC, MLIS from NAPLIA.
The paper discusses E&O Coverages basic procedures and how the industry has arrived at this point.
Here is our ppt deck from the June 6th TMA presentation in Chicago. Thanks to my fellow panelists: Dave Gozdecki, Reid Schar and Jeff Vogelsang. Attendees received 1.5 hrs CE
Insider Lease Agreements (Series: Fairness Issues in Real Estate-Based Bankru...Financial Poise
It is a common play in real estate to create a separate operating entity to serve as a tenant and execute a lease between the owner of the property and himself. Typically, this happens in assets which serve as a real estate-based business, such as a retail property. The structured enables the operator to reduce the taxable income of the business and also provide a liability shield for the property owner.
This arrangement can lead to some ethical issues, should the property owner become distressed. For example, is the lease amount above market and therefore being used to inflate the property valuation? Is rent actually being paid? Is there a proper lease in place or just an internal handshake? Attorneys need to understand the set-up in order to know what is in bounds and what is outside the lines.
To view the accompanying webinar, go to:https://www.financialpoise.com/financial-poise-webinars/insider-lease-agreements-2021/
This white paper examines the two primary sources of compliance obligations related to contracts: performance obligations and government regulations. For each source of compliance challenge, this paper identifies methods to improve compliance and contract management. Finally, this paper examines the kind of reporting that makes
Contracts create the network of relationships that allow organizations to thrive. Contracts generate revenue and control expenses. They allocate risks and responsibilities. Contracts create assets and liabilities. Contracts are the foundation of enterprise.
Compliance requirements touch every organization across industries. Regulations can lay down the rules of the road or impose barriers to business. Compliance is essential for success, like good brakes on a car.
This White Paper is written by Paul J. Smith, AIF and Gary Sutherland, CIC, MLIS from NAPLIA.
The paper discusses E&O Coverages basic procedures and how the industry has arrived at this point.
Here is our ppt deck from the June 6th TMA presentation in Chicago. Thanks to my fellow panelists: Dave Gozdecki, Reid Schar and Jeff Vogelsang. Attendees received 1.5 hrs CE
The Retirement Landscape: Technical and Legal UpdateBPAS
The DoL’s proposed fiduciary regulation is the most controversial ERISA initiative since the enactment of the statute in 1974. If adopted as proposed, the regulation will have significant impact on financial institutions selling products to IRAs and 401(k) plans. The proposed changes would essentially open up the $7 trillion IRA market to ERISA, impacting the sale of investment products, from mutual funds to variable annuities, to IRAs. The proposal would also change the definition of an “advice fiduciary,” making it easier for the DoL to assert claims against persons or entities selling investment products or gathering assets.
In this session, we’ll discuss the impact of the DoL proposal for your business, from the stand-point of what needs to be changed to make the proposal “workable” and what you’ll need to do to comply if the proposal is adopted without change. Specifically, this session will focus on:
Changes to the definition of Investment Advice Fiduciary
Fiduciary status “carve-outs” for sales presentations
The new Best Interest Contract Exemption for IRAs
Changes to PTE 84-24 and other Exemptions
Guest Speaker: Steve Saxon, Principal, Groom Law Group
Help, My Business is in Trouble! (Series: Restructuring, Insolvency & Trouble...Financial Poise
When a business becomes financially troubled, the business owner often experiences denial, paralysis, or both. Lenders commonly lose confidence and then trust in the business, as communications tend to break down, deadlines are missed, and promises are broken. Small business owners commonly have issued personal guarantees, so business failure can often lead to personal financial stress. The good news is the business and business owner usually has some options, and even some leverage. This webinar explains what a business owner should- and should not- consider and do when dealing with financial trouble. Specific topics include discussion of bankruptcy (Chapters 7 and 11); assignments for the benefit of creditors; and friendly foreclosures. This webinar provides the business owner and her advisors with an overview of various restructuring and liquidation methods, a framework for how to decide between them, and practical tips for traversing the difficult environment that is financial distress.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/help-my-business-is-in-trouble-2020/
Legal Structures and Basics for Small Business
If you are thinking of starting a business but aren't sure how to navigate the dreaded tax laws and legal issues that come with owning a business, then this is for you! This will discuss company ownership structure and how entrepreneurs should weigh their legal and financial options to find the ones that best fit their particular situation.
Business Law 101 aka Why the Heck Do I Need a Business Lawyer?Jeffrey O'Brien
An overview of basic business law concepts and a discussion of some common mistakes which your business attorney - if you have one, that is -- can help you avoid.
Can ATE be an ‘answer’ to a threatened security application? MLM 23Demi Edmunds
Matthew Williams answers the following question: After the event legal expenses insurance - can it be an ‘answer’ to a
threatened security application?
Webinar on Hidden Fees in 401k plans. How they impact plan holders and the potential liability that business owners and fiduciaries are now exposed to.
September 2011 - Business Law & Order - Douglas S. ParkerAnnArborSPARK
When forming a business one of the first decisions an entrepreneur will make is choice of entity. This session will cover the possible legal structures for your business activities, including the advantages and disadvantages of each type of entity in terms of limited liability, management of the business, employee compensation and tax matters. Learn the basics of Corporate Formation and understand the pros and cons of incorporating in Michigan and Delaware.
Single Asset Real Estate Cases (Series: Fairness Issues in Real Estate-Based ...Financial Poise
Anyone involved in the field of creditors rights on a matter involving an LLC that exists solely to hold the principal asset has surely seen the play where, the night before property is scheduled to be sold at a foreclosure auction, the debtor files bankruptcy. For those not familiar with the process, doing so invokes the “Automatic Stay”, which prohibits the secured lender from foreclosing on the property. The debtor then attempts to make their case to the court for reorganization.
But is failing to pay your mortgage really something bankruptcy was meant to solve? If the bank was going to agree to a loan modification, wouldn’t the parties have worked something out by the time the sheriff sale was set? The bankruptcy code recognizes this and therefore has a section devoted to dealing with this specific kind of bankruptcy—the Single Asset Real Estate (“SARE”) case. The goal of this episode is to look into ethical issues surrounding these matters.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/single-asset-real-estate-cases-2021/
ERISA Fiduciary Issues: A Guide for AdvisorsBroadridge
The role, expectations and legal requirements for ERISA fiduciary advisors is changing. Plan sponsors are increasingly looking to retirement plan advisors for guidance. This brings potential business opportunities but also more regulatory scrutiny. This paper provides advisors with guidelines to understand the plan sponsor role as fiduciaries and the steps to take to avoid breaching their duties.
The fourth webinar presentation in the M&A Litigation Series examines claims and other rights of action asserted by stockholders in connection with M&A transactions. Various types of claims and proceedings – ranging from fiduciary duty to federal securities to statutory appraisal – are discussed. Director and Officer indemnity and advancement obligations likewise are addressed.
On our agenda:
-Fiduciary Duty and Disclosure Claims
-Federal Securities Claims
-Statutory Appraisal
-Books and Records Inspection Rights
-D&O Insurance and Indemnity and Advancement Obligations
Discussion of basic contract principles and negotiation strategy for credit unions and other financial institutions in their agreements with outsourcing vendors. Focus on assessing risk, developing appropriate mitigation strategies and practical steps a credit union can take to obtain a positive outcome.
MBA Compliance Essentials: Vendor Management Resource GuideMBAMortgage
The MBA Compliance Essentials Vendor Management Resource Guide™ is a part of the MBA Compliance Essentials Program, which includes deep-dive webinars and comprehensive resource guides to serve as base for the development of your company's policies and procedures in these important areas. This is only a sample purchase the full Resource Guide at www.campusmba.org
5 years later General Growth bankruptcy case still resonatesSamantha Rothman
Samantha J. Rothman and Professors Douglas Baird and Joseph Pagliari Jr. discuss how the General Growth bankruptcy case has impacted SPEs, in theory and in practice.
LEGAL ETHICS – BEST PRACTICES 2022 - How to Avoid Malpractice & Disciplinary ...Financial Poise
This webinar presents basic practice pointers to avoid malpractice and disciplinary actions, and how to respond to claims of malpractice or unethical behavior if they arise. The panel also discusses the role that malpractice insurance plays in these situations and the ramifications of a malpractice judgment or disciplinary action. Model Rules addressed may include: those that govern the client-lawyer relationship (Rules 1.1 through 1.10; 1.13; and 1.16); those that that speak to transactions with persons other than clients (Rules 4.1 through 4.4); those that govern the responsibilities of managing and supervisory lawyers, subordinate lawyers, non-lawyer assistance, independence, unauthorized practice of law, and multijurisdictional practice (Rules 5.1 through 5.5); and those that govern communication, including advertising and solicitation of clients (Rules 7.1 through 7.5).
Part of the webinar series: LEGAL ETHICS – BEST PRACTICES 2022
See more at https://www.financialpoise.com/webinars/
Our endeavour upheld group has more than 50 years of experience working with systematic investment management, and software development. By utilizing machine learning, data science and automation, we enable advisors to manage portfolio risk in near real-time.
D&O Insurance - Become a Knowledgeable BuyerCraig Tappel
When serving as a board member for a corporation or non-profit, question the Management Liability policy limits and the coverage. They must be sufficient to protect both the entity and your personal assets.
The Retirement Landscape: Technical and Legal UpdateBPAS
The DoL’s proposed fiduciary regulation is the most controversial ERISA initiative since the enactment of the statute in 1974. If adopted as proposed, the regulation will have significant impact on financial institutions selling products to IRAs and 401(k) plans. The proposed changes would essentially open up the $7 trillion IRA market to ERISA, impacting the sale of investment products, from mutual funds to variable annuities, to IRAs. The proposal would also change the definition of an “advice fiduciary,” making it easier for the DoL to assert claims against persons or entities selling investment products or gathering assets.
In this session, we’ll discuss the impact of the DoL proposal for your business, from the stand-point of what needs to be changed to make the proposal “workable” and what you’ll need to do to comply if the proposal is adopted without change. Specifically, this session will focus on:
Changes to the definition of Investment Advice Fiduciary
Fiduciary status “carve-outs” for sales presentations
The new Best Interest Contract Exemption for IRAs
Changes to PTE 84-24 and other Exemptions
Guest Speaker: Steve Saxon, Principal, Groom Law Group
Help, My Business is in Trouble! (Series: Restructuring, Insolvency & Trouble...Financial Poise
When a business becomes financially troubled, the business owner often experiences denial, paralysis, or both. Lenders commonly lose confidence and then trust in the business, as communications tend to break down, deadlines are missed, and promises are broken. Small business owners commonly have issued personal guarantees, so business failure can often lead to personal financial stress. The good news is the business and business owner usually has some options, and even some leverage. This webinar explains what a business owner should- and should not- consider and do when dealing with financial trouble. Specific topics include discussion of bankruptcy (Chapters 7 and 11); assignments for the benefit of creditors; and friendly foreclosures. This webinar provides the business owner and her advisors with an overview of various restructuring and liquidation methods, a framework for how to decide between them, and practical tips for traversing the difficult environment that is financial distress.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/help-my-business-is-in-trouble-2020/
Legal Structures and Basics for Small Business
If you are thinking of starting a business but aren't sure how to navigate the dreaded tax laws and legal issues that come with owning a business, then this is for you! This will discuss company ownership structure and how entrepreneurs should weigh their legal and financial options to find the ones that best fit their particular situation.
Business Law 101 aka Why the Heck Do I Need a Business Lawyer?Jeffrey O'Brien
An overview of basic business law concepts and a discussion of some common mistakes which your business attorney - if you have one, that is -- can help you avoid.
Can ATE be an ‘answer’ to a threatened security application? MLM 23Demi Edmunds
Matthew Williams answers the following question: After the event legal expenses insurance - can it be an ‘answer’ to a
threatened security application?
Webinar on Hidden Fees in 401k plans. How they impact plan holders and the potential liability that business owners and fiduciaries are now exposed to.
September 2011 - Business Law & Order - Douglas S. ParkerAnnArborSPARK
When forming a business one of the first decisions an entrepreneur will make is choice of entity. This session will cover the possible legal structures for your business activities, including the advantages and disadvantages of each type of entity in terms of limited liability, management of the business, employee compensation and tax matters. Learn the basics of Corporate Formation and understand the pros and cons of incorporating in Michigan and Delaware.
Single Asset Real Estate Cases (Series: Fairness Issues in Real Estate-Based ...Financial Poise
Anyone involved in the field of creditors rights on a matter involving an LLC that exists solely to hold the principal asset has surely seen the play where, the night before property is scheduled to be sold at a foreclosure auction, the debtor files bankruptcy. For those not familiar with the process, doing so invokes the “Automatic Stay”, which prohibits the secured lender from foreclosing on the property. The debtor then attempts to make their case to the court for reorganization.
But is failing to pay your mortgage really something bankruptcy was meant to solve? If the bank was going to agree to a loan modification, wouldn’t the parties have worked something out by the time the sheriff sale was set? The bankruptcy code recognizes this and therefore has a section devoted to dealing with this specific kind of bankruptcy—the Single Asset Real Estate (“SARE”) case. The goal of this episode is to look into ethical issues surrounding these matters.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/single-asset-real-estate-cases-2021/
ERISA Fiduciary Issues: A Guide for AdvisorsBroadridge
The role, expectations and legal requirements for ERISA fiduciary advisors is changing. Plan sponsors are increasingly looking to retirement plan advisors for guidance. This brings potential business opportunities but also more regulatory scrutiny. This paper provides advisors with guidelines to understand the plan sponsor role as fiduciaries and the steps to take to avoid breaching their duties.
The fourth webinar presentation in the M&A Litigation Series examines claims and other rights of action asserted by stockholders in connection with M&A transactions. Various types of claims and proceedings – ranging from fiduciary duty to federal securities to statutory appraisal – are discussed. Director and Officer indemnity and advancement obligations likewise are addressed.
On our agenda:
-Fiduciary Duty and Disclosure Claims
-Federal Securities Claims
-Statutory Appraisal
-Books and Records Inspection Rights
-D&O Insurance and Indemnity and Advancement Obligations
Discussion of basic contract principles and negotiation strategy for credit unions and other financial institutions in their agreements with outsourcing vendors. Focus on assessing risk, developing appropriate mitigation strategies and practical steps a credit union can take to obtain a positive outcome.
MBA Compliance Essentials: Vendor Management Resource GuideMBAMortgage
The MBA Compliance Essentials Vendor Management Resource Guide™ is a part of the MBA Compliance Essentials Program, which includes deep-dive webinars and comprehensive resource guides to serve as base for the development of your company's policies and procedures in these important areas. This is only a sample purchase the full Resource Guide at www.campusmba.org
5 years later General Growth bankruptcy case still resonatesSamantha Rothman
Samantha J. Rothman and Professors Douglas Baird and Joseph Pagliari Jr. discuss how the General Growth bankruptcy case has impacted SPEs, in theory and in practice.
LEGAL ETHICS – BEST PRACTICES 2022 - How to Avoid Malpractice & Disciplinary ...Financial Poise
This webinar presents basic practice pointers to avoid malpractice and disciplinary actions, and how to respond to claims of malpractice or unethical behavior if they arise. The panel also discusses the role that malpractice insurance plays in these situations and the ramifications of a malpractice judgment or disciplinary action. Model Rules addressed may include: those that govern the client-lawyer relationship (Rules 1.1 through 1.10; 1.13; and 1.16); those that that speak to transactions with persons other than clients (Rules 4.1 through 4.4); those that govern the responsibilities of managing and supervisory lawyers, subordinate lawyers, non-lawyer assistance, independence, unauthorized practice of law, and multijurisdictional practice (Rules 5.1 through 5.5); and those that govern communication, including advertising and solicitation of clients (Rules 7.1 through 7.5).
Part of the webinar series: LEGAL ETHICS – BEST PRACTICES 2022
See more at https://www.financialpoise.com/webinars/
Our endeavour upheld group has more than 50 years of experience working with systematic investment management, and software development. By utilizing machine learning, data science and automation, we enable advisors to manage portfolio risk in near real-time.
D&O Insurance - Become a Knowledgeable BuyerCraig Tappel
When serving as a board member for a corporation or non-profit, question the Management Liability policy limits and the coverage. They must be sufficient to protect both the entity and your personal assets.
The Insurance Act 2015 has introduced the most significant reform to insurance law in over 100 years. The Act impacts all those involved in the insurance sector. In this report we review key markets' response to the Act and outline the practical steps you should have addressed ahead of the Act coming into force.
Visit our hub to access information and resources tailored to brokers: www.brownejacobson.com/brokers
This paper is provided by NAPLIA.
The Investment Advisor’s Guide to Errors & Omissions Insurance will help you anticipate areas of underwriter concern as it relates to your specific investment practice, helping you internally evaluate your risk exposures and better define your activities and professional services.
Commercial insurance risk and liability review, February 2016Browne Jacobson LLP
Our annual review provides a comprehensive review of some of the most important judgments and legal developments during 2015 and our analysis of some of the changes on the horizon for 2016 and beyond. We have covered a lot of ground this year so I hope you will be able to find a number of updates that are relevant and useful to you.
If you would like to know more about any of the topics, please feel free to contact any of the authors of the articles.
https://www.brownejacobson.com/insurance/training-and-resources/legal-updates/2016/01/commercial-insurance-risk-and-liability-review-2015-2016
Shutting The Door on Legal Malpractice nelysonboyd
"Understanding and avoiding potential conflicts of interest, organizing your practice, and fostering healthy client relationships will help you prevent ethics complaints and malpractice lawsuits." Deborah M. Nelson
How should I prepare an ATE application? MLM 4Demi Edmunds
Matthew Williams answers the following question: After discussing funding/insurance options on a new commercial claim, the client wishes to apply for after the event legal expenses insurance (ATE). How should I prepare the application? What cover should the client seek?
1. S E P T E M B E R 2 0 16 15
Policy
L
et’s face it – being a professional in this era has
become increasingly complicated and laced with
rules and regulations that many are simply not
aware of. The financial services industry as a
whole is constantly under attack from state, federal and other
authorities to create, what they believe to be, more protection
for the consumers.
It has become clear that under the regulations, CPAs are
considered fiduciaries; hence, with great power comes great re-
sponsibility. A fiduciary is someone who must legally put the
client’s interests first, even before his or her own interests. This
also includes lawyers, trust officers, RIAs, CFPs and more.
The confusion and ambiguous nature of this has blurred what
everyone’s responsibilities are, and the legal community contin-
ues to litigate within the boundaries of this massive rulebook.
Let’s look at this “at 10,000 feet.” One who has discretion over
someone’s assets and/or manages property for the benefit of
another – this includes any individual who oversees or acts as
trustee – implies that a breach of responsibility can occur when
underlying assets of any kind do not behave as expected in
comparison to certain benchmarks.
Overconfidence and the belief that you have this knowledge
may put you and your firm on the wrong side of compliance.
To deal with these issues, firms must master several areas of
regulation/compliance: services provided, licenses required,
disclosure and recordkeeping. There are many concepts and de-
tails in regards to these items to understand, but this article will
focus on the trustee or fiduciary responsibility of assets within
trusts or under your purview. We will specifically focus on life
insurance regarding the remarkable amount of poor advice
in the markets and lack of professionalism by the underlying
brokers, as well as the responsibility of the CPA. As a standard,
firms should keep meticulous records to document that all of
the work on a particular transaction was conducted within the
guidelines. It’s best to make all insurance records part of the
client’s permanent file and/or easily accessible in a separate file.
Keep records of all discussions for each client meeting concern-
ing insurance; include who was there, topics discussed, conclu-
sions reached and recommended actions. Upon completion of
the transaction, CPA firms should create a comprehensive clos-
ing document. It should include details of the entire process, its
intended purpose, compliance documents and filing dates. This
file will run the entire term of the policy.
The closing document should include an appendix containing
signed copies of all related legal agreements: the policy itself, il-
lustrations, trusts, assignments, loan and financing documents,
payment schedules, tax dates and tax opinions, if necessary.
When laws change, a policy may no longer be a viable option.
A proper recordkeeping system will enable CPAs to quickly
identify those clients to whom the new change applies, notify
them immediately and arrange a meeting to consider if any
modifications are required.
Most of the guidelines for trust-owned life insurance fall un-
der the Uniform Prudent Investor rules. We find it is very rare
that most insurance agents, legal and accounting professionals
have specific fiduciary training or knowledge of these guide-
lines. Insurance agents simply sell the policy, whether properly
or not, and walk away.
In a recent lawsuit against a division of Goldman Sachs for
a breach of advisory duties, the plaintiff was awarded $14.2
million for the disappointing performance of its life insurance.
The clients initially paid over $4 million for $95 million in cov-
erage, but they were forced to cancel the policies and paid $26
million in order to replace what they had initially purchased.
Two reputable firms with credible backgrounds calculated the
premium required to maintain the same benefits, using the
same information, and yet their calculations differed dramat-
ically. This is an obvious example of the vulnerability caused
Legislation,
Regulation
and Your Risks
By Mitchell K. Smith
If everything appears to be
going well, most likely you
are not aware of everything
that is going on.
2. S E P T E M B E R 2 0 16 17
Policy
by relying on prevailing life insurance industry practices
now considered “misleading” by the chief regulatory body
of the financial services industry. Had the advisers applied
prudent investor principles widely accepted in other seg-
ments of the financial services industry, the result would
potentially have been very different.
If consideration had been taken for policy expenses and
reasonableness of performance expectations, instead of
comparing hypothetical illustrations, the plaintiff most
likely would have paid more initially but less in total for
the policies, and the advisers could have defended the pru-
dence of their recommendation without litigation.
In the most significant part of this story, the plaintiff was
the former CEO of Qwest Communications (since taken
over by CenturyLink) who had been convicted of insider
trading in 2007; he served five years in prison and paid
fines of $70 million.
The moral of this story: if a convicted felon can
successfully sue one of the industry's most respected
and sophisticated financial services firms, what would
happen to everyone else whose clients don’t have the
credibility issues of this plaintiff?
There are solutions to handling these responsibilities –
cleaning up your books and dealing with future clients by
outsourcing some of these compliance guidelines.
What if the accountant serves as a "business advisor?"
Example: An accounting firm agreed to serve as a business
advisor to recommend improvements in internal account-
ing controls, operating controls and policies. The plaintiff
argued that the accountant breached fiduciary duties by
failing to disclose that it lacked the expertise necessary to
perform the services for which it was retained, and that it
lacked expertise to make final decisions on technical issues.
Trustees and other fiduciary professionals can delegate
investment and management functions and, when prop-
erly delegated, are generally not liable for the decisions or
actions of the agent to whom the function was delegated.
That being said, it is integral the outsource arrangement is
with someone who is independent under the rule and can
actually provide this service. So of course, be careful with
relying solely on the selling or servicing agent/broker for
advice. While many agents/brokers market themselves as
independent, most are not and instead have duties to pro-
mote their employer’s interests and/or are limited by terms
of their contracts with some limited number of insurers.
They may also have a conflict of interest with regard to
policy replacement, and are often not trained in financial
analysis or fiduciary principles or law.
We believe it is another shining light on why you should be
working with and maintaining professional relationships
with firms who understand the law and ethical standards of
practice. Times have changed, and those who haven’t will
not survive this new age.
Mitchell K. Smith, managing principal of Universal In-
surance Services LLC/Vanbridge LLC, has partnered with
Dierdre Collins of Harbor Insurance Strategies for years to
provide insurance planning techniques, policy design and
advice to CPAs and their clients with the intent to reduce
the eroding effects of taxes where ever possible. Contact him
at Mitch@uiservices.com.
Times have changed, and
those who haven’t will not
survive this new age.