WELLS FARGO APPLIES ED JONES DIVERSITY PUSH FINRA TARGETS COSTLY KILL THE ESTATE TAX 4NEW ADVISORY FEE 5 STIRS CONTROVERSY 20 529 SHARE CLASSES 26 OR BROADEN IT? FEBRUARY 4-8, 2019 THE LEADING INFORMATION SOURCE FOR FINANCIAL ADVISERS $5.00 / $89 Year SHERYL GARRETT, GARRETT PLANNING NETWORK ICONS& INNOVATORS FEARLESS EXPERIMENTORS AND THEIR BIG IDEAS FOR THE ADVICE PROFESSION TAKE CENTER STAGE PAGE 10 NEWSPAPER | VOL. 23, NO. 5 | COPYRIGHT INVESTMENTNEWS LLC. | ALL RIGHTS RESERVED INVESTMENTNEWS.COM Joseph F. Hohn Joel P. Schneider Lukas J. Smart, CFA Dimensional Fund Advisors Ranked the #1 provider of JOHN HANCOCK MULTIFACTOR ETFs multimanager investments by financial advisors At John Hancock Investments, we search the world to fi nd proven portfolio teams with specialized expertise for every strategy we offer, then we apply robust investment oversight to ensure they continue to meet our uncompromising standards and serve the best interests of our shareholders. Discover our multimanager approach at jhinvestments.com. Dimensional Fund Advisors is a subadvisor of John Hancock Multifactor ETFs. Ranking is by Market Strategies International, Brand Tracking Study, 2017; Cogent Reports, Investor Brand Builder, 2017. Investing involves risks, including the potential loss of principal. See the prospectuses for details. Request a prospectus or summary prospectus from your fi nancial advisor, by visiting jhinvestments.com, or by calling us at 800-225-5291. The prospectus includes investment objectives, risks, fees, expenses, and other information that you should consider carefully before investing. © 2019 John Hancock. All rights reserved. John Hancock Multifactor ETFs are distributed by Foreside Fund Services. IN011658_left.indd 2 1/22/19 1:28 PM Joseph F. Hohn Joel P. Schneider Lukas J. Smart, CFA Dimensional Fund Advisors Ranked the #1 provider of JOHN HANCOCK MULTIFACTOR ETFs multimanager investments by financial advisors At John Hancock Investments, we search the world to fi nd proven portfolio teams with specialized expertise for every strategy we offer, then we apply robust investment oversight to ensure they continue to meet our uncompromising standards and serve the best interests of our shareholders. Discover our multimanager approach at jhinvestments.com. Dimensional Fund Advisors is a subadvisor of John Hancock Multifactor ETFs. Ranking is by Market Strategies International, Brand Tracking Study, 2017; Cogent Reports, Investor Brand Builder, 2017. Investing involves risks, including the potential loss of principal. See the prospectuses for details. Request a prospectus or summary prospectus from your fi nancial advisor, by visiting jhinvestments.com, or by calling us at 800-225-5291. The prospectus includes investment objectives, risks, fees, expenses, and other information that you should consider carefully before investing. © 2019 John Hancock. All rights reserved. John Hancock Multifactor ETFs are distributed by Foreside Fund Services. IN011658_right.indd 3 1/22/19 1:27 PM TOPNEWS ACCURACY / EXCELLENCE / FAIRNESS / IMPARTIALITY / INDEPENDENCE 7 IN on the Road FINRA TARGETS RECRUITING HELP 8 Editorial COSTLY 529 PLANS New platform aims to ONLINE 21 Fiduciary Corner Regulator encourages give advisers more con- CRYPTO BEATING DOESN’T INSIDE 25 On Technology firms to self-report trol in finding jobs. WEAKEN ADVISER INTEREST share-class infractions. FEB. 4-8, 2019 PAGE 24 InvestmentNews.com/crypto Cover: Adam Murphy PAGE 20 EDITOR’S NOTE Change agents BofA offers adies and gentlemen, meet Investment- L News’ 2019 Icons & Innovators. The people on this list represent the free trades on brightest, most engaging minds in the indus- try. Not only have they inspired innovation in their businesses, they’re catalysts of change for our profession. Merrill Edge These are the folks who sometimes annoy you. The ones who can’t stop talking BY JEFF BENJAMIN about that crazy idea that came to them while walking their dog. The ones who send BANK OF AMERICA is hoping to emails at 3 a.m., or prolong lure millions of banking customers office meetings by question- into its rewards programs by offer- ing every little thing — even ing commission-free online trad- the “obvious.” ing for stocks and exchange-trad- These are the people ed funds. who change minds, business Commission-free trading for strategies and the future of the bank’s top-tier rewards pro- a profession. Yeah, those grams have been available in some people form since 2006, FRED GABRIEL We believe nothing is Wells Fargo charges new fee but until now more crucial to the growth of this profession those banking than innovation. The list we present was put customers had together by InvestmentNews’ editorial team BY BRUCE KELLY Wells Fargo Advisors receives revenue to have at least with input from our readers. Ultimately, we from several areas; those include adviso- $50,000 in bank- 10 selected 11 visionaries: one Icon and 10 WELLS FARGO Advisors is hitting clients ry fees, minus the payout to brokers and ing or investment NUMBER OF Innovators. with a new annual fee on advisory accounts financial advisers, and some investment accounts. Now, And InvestmentNews is still accepting In- that is roughly six basis points — equal to management programs that charge ad- customers in the FREE TRADES novation Award nominations for broker-deal- $590 per year on the average client with $1 ministrative or management fees. bank’s lowest PER MONTH ers, custodians, fintech firms, asset manag- million in advisory as- “The fee supports services we provide tier, those with ers, wirehouses, RIAs and other companies. sets — according to a to maintain the platform for all advisory at least $20,000 FOR THOSE Learn more about those awards, and submit MORE memo sent to the firm’s accounts, including technology and re- in their accounts, WITH $20K IN a nomination by Feb. 15, at InvestmentNews. Wells Fargo RIA advisers last week. cord-keeping services provided to mutual will qualify for com/nominateinnovation. channel partners The new fee ap- funds available on our advisory platform,” up to 10 free ACCOUNTS We’ll celebrate the individual and firm with TradePMR. plies to all advisory according to the memo. “Similar ap- trades a month. winners at a dinner following our Innovation accounts. However, proaches have recently been implemented This represents the latest tweak Summit in New York City on April 17. To have PAGE 28 clients could receive a by some competitor firms.” in the Merrill Edge self-directed a seat at the table, register at Investment- rebate based on reve- online platform, which has grown News.com/innovationsummit. nue sharing from mu- NOT SHARED WITH ADVISERS to $185 billion from $45 billion in tual funds that could offset the new fee or The new fee, which will be charged each 2010, according to Aron Levine, [email protected] even provide a net credit, according to the quarter, will not be shared with financial head of consumer banking and Twitter: @fredpgabriel memo, a copy of which was obtained by advisers, according to the memo. Merrill Edge. InvestmentNews. CONTINUED ON PAGE 28 CONTINUED ON PAGE 28 Contents © Copyright 2019 by InvestmentNews LLC. All rights reserved. Vol. 23, No. 5, February 4, 2019. InvestmentNews (ISSN 1098-1837) is published weekly except for the first week of January, the first, third and last week of July, the second and fourth week of August and the last week of December by InvestmentNews LLC. The agent is Crain Communications Inc., 1155 Gratiot Avenue, Detroit, MI 48207-2912. Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send address changes to InvestmentNews, Circulation Dept., 1155 Gratiot Avenue, Detroit, MI 48207-2912. U.S. subscription price: $89 a year. INVEST IN YOUR BRAND, YOUR BUSINESS AND YOURSELF JOIN US IN HUNTINGTON BEACH, CA ON MARCH 26TH REGISTER TODAY AT WWW.INVESTMENTNEWS.COM/WAS Use code: PRINT to Save $100 and register for $199 4 | INVESTMENTNEWS FEBRUARY 4, 2019 INVESTMENTNEWS.COM Finance Logix, a financial plan- ning software Envestnet ac- quired in 2015 for $30 million. The user interface and fea- Edward Jones’ tures were designed by Apprise Labs, a new company formed by Envestnet, PIEtech and Mr. diversity KEY POINTS • Walters partners with EDMOND Envestnet and PIEtech push stirs WALTERS on new software. • Tool will compete with eMoney, which Fidelity eMoney founder teams bought from Walters in 2015. controversy BY MARK SCHOEFF JR. Walters. The product will be more advanced and sophisti- How much AN INITIATIVE by Edward Jones with MoneyGuide cated than current iterations of to help women and minority advis- Finance Logix, offering cash- ers jumpstart their careers is being flow-based tax and estate plan- is enough praised by diversity advocates but BY RYAN W. NEAL one of the biggest competitors ning. criticized internally as discrimina- of eMoney, arguably the most “These new capabilities will to have saved tory. EMONEY ADVISOR founder popular planning tool among use visual, interactive tech- In an internal document sent to Edmond Walters is teaming up financial advisers. nology to help clients manage brokers last month and obtained by with Envestnet and PIEtech's The last time Edmond Wal- important financial decisions at each age InvestmentNews, the company said MoneyGuide to intro- ters spoke at the T3 pertaining to home sales, retire- advisers who are retiring or stream- duce financial plan- Adviser Conference ment investments and assets, ere are the level of 401(k) lining their books of business can ning software for MORE was in February 2015, inheritance gifts, endowment H savings of six different age receive an incentive — an addition- advisers that will just weeks after Fi- contributions and more,” Mr. groups, according to plans Fidelity al 10% on their assets — if they turn T3 news includes compete head on with delity Investments Bergman said in a statement. administers, as well as rules of them over to advisers who are wom- his initial brainchild, new Orion tools.