The U.S. Supreme Court decided the case of LaRue v DeWolff, Boberg & Associates, Inc. on February 20, 2008. The unanimous decision declared that defined contribution participants can bring fiduciary breach lawsuits to recover individual damages

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Here is a better view of the background and experience of those who participated in our feature article, “The Hidden World of Headhunters.” Some recruiters had extremely diverse backgrounds and found rather circuitous routes to the financial services industry.
We think you’ll find them fascinating.
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When asked what they would change about their profession and about the industry, the consensus was to toss out the bad folks and reward the good ones. Compensation structures and B/D motives were also a topic of concern. Those who responded had this to say:

If you had the power to change your profession, what would you change?
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An industry visionary and innovator, Steve Barger is a pioneer of the modern financial services industry. He created the banking industry’s first financial services investor centers in the 70s, and led the marketing efforts of Shearson-Lehman Brothers in the 80s. He was the Director of Business Development and Training for Smith Barney in the 90s, and later as a senior executive with CitiGroup Financial Services he directed training and development for the largest financial services sales force in America. He is also a nine-time distinguished instructor at the Wharton Business School Securities Institute. Today, he mentors and coaches leading advisors and RIAs through his firm, The Barger Group. BDJ caught up with Steve between coaching sessions in his Prescott, Arizona office.

Steve, you’ve had quite a long and illustrious career. For more than 30 years you have championed for advisors and their clients. Tell us how you came to the industry.

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We’ve entered a recessionary cycle, and the volume of new business that financial advisors are able to generate has fallen off from a couple of years ago. As a branch manager, you’ve done your share of coaching and hand-holding of advisors on your team concerned about their clients’ assets, and the future of their practices due to declining revenues. The stress of a recession dragging may prompt your advisors to blindly duck for cover and slash any marketing and publicity efforts.
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Life Would Be Easy If It Weren’t For Other People
By Connie Podesta with Vicki Sanderson,
Sage Publications, 194 Pages

At one time or another, all of us have had to deal with difficult people. The real question then becomes, “How did we deal (or not deal) with them?” In their book, “Life Would Be Easy if it Weren’t for Other People,” Connie Podesta and Vicki Sanderson take readers on an enlightening tour of the four types of communication behavior: assertive, aggressive, passive and passive-aggressive. As the characteristics of each behavioral type are revealed, readers are sure recognize people in their lives who fit each description. These characteristics are crucial to understand when working with prospects and clients.
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Financial advisors have always struggled with balancing the administrative side of their practices with client-focused, revenue-generating activities. The profession is detail-oriented and paper-intensive, and also requires advisors to devote as much time as possible to personal interaction.

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The past few months have been harrowing ones for investors and the world’s financial markets, shaken by the subprime crises, credit crunches, and other ills.

Although, at times like these, it becomes difficult to see the proverbial light at the end of the tunnel, the prevailing assumption among investors should be that recessions and bear markets come and go, and that things will work out in the end, much as they have since the Great Depression.
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The 10th Annual Pershing INSITE Conference was host to a sold-out crowd of more than 1,700 attendees in Hollywood Florida, June 4-6. Is it possible that Dr. Alan Greenspan, former Federal Reserve Board Chairman, may have had some impact on the stellar attendance?
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Most of you will remember the landmark arbitration case of Stephen B. Sawtelle vs. Waddell and Reed, Inc. that will go down in Wall Street history as the longest arbitration and the largest punitive damage award ever given to a financial advisor. After eight grueling years, the NASD arbitration panel awarded him $27 million on August 7, 2001 in compensatory and punitive damages for what his firm put him through.

In addition to awarding damages, the arbitrators ordered that defamatory information Waddell & Reed had placed on Mr. Sawtelle’s Form U-5 be expunged.
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