Copy
View this email in your browser

Do You Know About the Notice Condition in Your E&O Insurance Policy?
 
Many RIAs are new to errors and omissions (E&O) insurance because of the new insurance requirements set forth by Schwab/TD, Fidelity, and Pershing. What you may not know is that timely reporting of claims is critical, as E&O insurance policies contain reporting notice provisions that require claims to be reported in a timely fashion. This includes the reporting of circumstances that may reasonably give rise to a claim as well. 

Do not sit on claims or situations that may result in claims. Always be safe and turn them in.
If your firm is in need of insurance coverage to satisfy one or more of the insurance requirements for Schwab, Fidelity, and/or Pershing, we encourage you to begin the process right away. Click here to start the quote process by accessing our premium indication sheet.
Number of Active RIA Firms Has More Than Doubled In Ten Years
 
The Rule of 72 is a popular formula used to estimate the number of years to double money at a given rate of return. A common application of this formula is that at a 7.2% rate of return, your money will double in 10 years.

Although the math is not exact, data supplied by RIA Database shows that in January 2013, the number of active RIA firms was 19,839 and by the end of March 2023, there are now active 40,930 RIA firms. It is remarkable to see the number of RIAs more than double in just over 10 years, but not surprising given the benefits clients receive from working with a fee-only fiduciary.

Hiccups New RIAs Experience
 
A March Risk Alert from the SEC identified common deficiencies seen in newly-registered RIAs, as focusing on them has been a priority over the last 10 years. The three key areas identified within the newly-registered adviser examinations were:
  1. Compliance policies and procedures;
  2. Disclosure documents and filings; and
  3. Marketing. 
Sample Claim

A longtime client of 30 years is a married couple who is starting the divorce process. The wife alleges that the advisor is providing improper advice to the husband's benefit and to her detriment and a settlement of $50,000 is offered to her.

Due to emotions running high, combined with the emotional nature of the situation, the wife declines the offer. Initially filed in September 2022 and currently in discovery, the hearing is scheduled to occur in August 2023. Including defense costs, the claim is expected to surpass $500,000.
Jon Kreusch
Executive Vice President / Principal 
937.434.9090 Ext. 23

Email Jon
Joe Bolek
Agent
937.434.9090 Ext. 18

Email Joe
Rachel Irwin, CISR
Account Manager
937.434.9090 Ext. 19

Email Rachel
Patti van Dijk, CISR
Account Manager
937.434.9090 Ext. 11

Email Patti
Nick Kreusch
Assistant Account Manager
937.434.9090

Email Nick
Copyright © | 2020 | The Uhl Agency | All rights reserved.

Our mailing address is:
7755 Paragon Road, Ste 100, Dayton, OH 45459

Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list.






This email was sent to <<Email Address>>
why did I get this?    unsubscribe from this list    update subscription preferences
The Uhl Agency · 7755 Paragon Rd · Ste 100 · Dayton, OH 45459-4055 · USA