We certainly hope that everyone had a wonderful holiday season and is well rested.
I recently found myself interrupted during time I had allocated to catching up on my compliance reading. You know those moments, when you find yourself next to a person who just wants to talk. After the pleasantries, I tried to get back to my reading, but he kept talking. He certainly knew an awful lot about old cars. I briefly engaged again with a tinge of annoyance as my plan for the next hour was off schedule. Again, I turned to my documents and tried to continue my read, but strangely, I was feeling a little selfish, and I didn’t know why. Maybe because he was just being so authentic.
I turned to him and started to ask questions. My new friend was 76 years old but didn’t look a day over 60. I learned he was a Special Forces, paratrooper veteran with over 3,000 jumps and was severely wounded in Vietnam during a jump. He still jumps out of planes for fun. I learned he also still has the first car he ever purchased (Mercury Comet Cyclone) when he returned from Vietnam and only drives it once or twice a year including on a racetrack close to his home. I learned about his family and the advice he gave his son when he was struggling.
The hour flew by. At first, I thought I was doing him a favor by listening. As I drove home however, I genuinely felt enriched and at peace. The mounting “to-do” list will always be there. However, I am grateful for these opportunities to stop and remember to connect.
We want to continue connecting more this year with our clients and colleagues.
Looking back on 2022 we are definitely seeing regulators rebound post-COVID. We’ve experienced increased exam levels, including a return to onsite exams. Also, with nine final rules adopted and 29 proposals, the Commission has been very busy on the rulemaking front as well. A common thread among these rules and proposals remains the fiduciary principals that underpin so many aspects of financial regulations, including best execution, proxy voting, conflict of interests and disclosure. As you finalize your risk assessment and annual review for the year, we encourage you to revisit the Commission’s June 2019 Standards of Conduct Interpretation as a refresher. As we wrote in 2020, “The Interpretation is far more than a refresher on fiduciary duty, clarifying the dual duties of loyalty and care. In addition, the Interpretation re-emphasizes the fact that informed consent is a component of fiduciary duty.” The Interpretation provides examples and practical procedural advice that advisers should be considering when reviewing their policies and procedures.
This year we saved everyone a few calories. In lieu of treats, we made a donation to Childrens Hospital of Philadelphia. Here’s to a productive 2023, filled with meaningful connections.