There are first world problems, and then there are problems only the top .001 percent have to deal with. According to Property Casualty 360, ultra high-net-worth families are especially susceptible to having excess assets not fully covered by standard insurance. Three types of insurance these extremely rich clients should have include aircraft insurance, domestic employee insurance and wine collection insurance. Aircraft insurance extends to damages to the aircraft, as well as liabilities associated with operating in flight. This is necessary for any clients who own private jets or even fractional ownership of a fleet or regularly charter flights. Domestic employee insurance, which covers babysistters, caretakers, housekeepers, drivers, health aides, private nurses, landscapers and more, covers injuries suffered on the job by employees and protects the client from any legal action or damages. Wine collection insurance, which is in addition to typical homeowners insurance, can be used to cover each item individually—good for collections with high-value bottles—or blanket coverage that provides an overall value to the collection with a per-item limit.
The Department of Labor fiduciary rule is likely going to hit small and mid-sized broker/dealers—already crushed by compliance burdens and margin pressures—particularly hard. Advisor Group, one of the nation’s largest independent b/d networks with over 5,000 advisors, hopes to use its scale to take advantage of the fallout. The firm has tapped Steve Chipman as its new head of strategic acquisitions, reporting to Jeff Auld, president and CEO of SagePoint, one of the firm’s b/ds. “With the continued heightened regulatory environment and impending DOL implementation, now is [a] great time to evaluate how best to seize the opportunities that will be available to firms that are well positioned for such change,” Chipman said, in a statement. Most recently, Chipman was the president and CEO of Foothill Securities, a b/d acquired by Securities America last summer.
Janney Montgomery Scott is turning to Advicent to comply with the Department of Labor’s fiduciary rule. Janney will implement NaviPlan, Advicent’s financial planning software, into its workflow for clients and prospects. Janney advisors will also have access to Advicent’s technology to offer account aggregation, goals-based assessments, cash-flow analysis and scenario simulation calculations. “The ability to remain transparent with clients and prospects is key to any financial services business, especially given the future changes expected from the DOL,” said Martin Schamis, the vice president and head of wealth planning at Janney. “As we prepare for heightened regulation in the industry this year, the Janney-Advicent partnership will allow us to continue to deliver on this commitment and set our employees and clients up for long-term success.”