Laura Doyle | CHUBB Insurance
Vice President, Collections Manager, Personal Risk Services
The next 30 to 40 years will see an unprecedented transfer of intergenerational wealth. According to consulting firm Accenture, Boomers will pass $30 trillion in financial and nonfinancial assets – including art collections – to their heirs in North America.
Advisors seeking to earn the loyalty of this next generation have discovered their priorities and expectations differ from their parents’. For instance, younger generations expect a more consultative relationship with their advisors, rely more on social media when making decisions, and increasingly view collections such as art as a financial investment in addition to a passion.
In fact, according to Fidelity Investments, up to 90% of children fire their parents’ financial advisor after they receive an inheritance. By 2050, advisors could lose $27 trillion or more in assets under management.
To retain this valuable business, wealth managers are using strategies such as developing a multi-generational engagement team, adding social media and mobile solutions, enhancing websites and client portals, and focusing on socially responsible investing and charitable giving. In addition, 73% of wealth managers believe art market and research information would be one of the most relevant services they could offer clients, according to a report by consulting firm Deloitte and art market analysis firm ArtTactic.
As advisors become more consultative in their approach, understanding how to protect inherited art can play a vital role in their retention efforts. At a time when heirs may be grieving and simultaneously overwhelmed with details, they also receive a nonfinancial asset that requires immediate attention to preserve its value. Even if they plan to sell or store the collection, they will need to protect it until it changes hands. What key steps do your new or potential clients need to take to protect their inherited art?
On Jan. 2, 2018, the Department of Labor (DOL) issued a final rule that increases the civil penalty amounts that may be imposed on employers under various federal laws. The final rule increases the civil penalty amounts associated with:
- Failing to file an annual Form 5500 under the Employee Retirement Income Security Act (ERISA);
- Repeated or willful violations of minimum wage or overtime requirements under the Fair Labor Standards Act (FLSA);
- Willful violations of the poster requirement under the Family and Medical Leave Act (FMLA); and
- Violations of the poster requirement under the Occupational Safety and Health Act (OSH Act).
Cyber security researchers recently announced the discovery of two major security flaws that could allow hackers to bypass regular security measures and obtain normally inaccessible data. The flaws, referred to as Meltdown and Spectre, are both caused by design flaws found in nearly all modern processors. These vulnerabilities can be exploited to access all of the data found in personal computers, servers, cloud computing services and mobile devices.
On Dec. 20, 2017, the tax reform bill, called the Tax Cuts and Jobs Act, passed both the U.S. Senate and the U.S. House of Representatives. The bill is now expected to be signed into law by President Trump shortly.
This tax reform bill, drafted based on a tax reform plan that was developed in consultation with the Trump administration, will make significant changes to the federal tax code. Specifically, the tax reform bill will have a substantial impact on businesses.
Religion may be a staple in the lives of many of your employees, while others may not consider themselves religious at all. To ensure that all employees are treated equally, create an environment that enables employees to practice their beliefs without forcing them on others. Under Title VII of the Civil Rights Act of 1964, employers must try to “reasonably accommodate employees’ sincerely held religious beliefs, observances and practices when requested, unless accommodation would impose an undue hardship on business operations.” The following provides some best practices in finding the right balance for your organization.