o_19grqq7snim9mn019q11f7ds26a.pdf

y amy m. armstrong
Transparency:
Potentially Overwhelming
As the legislated mandates of
Dodd-Frank and the voluntary
requirements of the Basel III agreement
take hold in the nation’s financial
services sector, increased transparency
is the intended result. Under
the Title IX provisions of Dodd-Frank,
a stricter series of investor protection
requirements were created. While
financial advisors welcome investor
protection, some do question whether
the tsunami of paperwork and electronic
communication now required
for compliance with these updated
regulations is truly in the best interest
of the investing consumer.
Doug Howes is one of those financial
advisors considering the implications.
He is the CEO of the independent
financial services firm Sapphire
Wealth Management, LLC, based in
Andover, Massachusetts.
“In our experience the outcome of
these regulations has created a new
issue,” Howes notes. He agrees that
clients should be fully informed regarding
their personal money choices.
It’s important – and full disclosure
is something the team at Sapphire
Wealth has been doing since the inception
of the firm in 2005. However,
he has a few concerns regarding the
latest developments in this area from
a regulatory standpoint.
“On the surface, you would think
it is a positive. However, in order
to adhere to the current regulations
for transparency, it requires considerably
more disclosure. This has led
to significantly more information being
delivered to the clients’ mail and
in-boxes. Our clients have expressed
to us how this can be overwhelming.
I am not 100 percent convinced that
transparency as it looks today – and
I agree that transparency is necessary
– but as it looks today, is not doing
more harm than good.”
He says this because his greatest
concern is that the sheer volume of
paperwork and email being sent to
clients could cause already information-saturated
clients to overlook the
one vital document that truly does require
their attention.
This is one of the reasons he remains
in constant contact with the clients
of the firm. Initially, his goal was
to build a firm based on exceptional
client relationships. It was something
his grandfather – a man who spent
his career in the service industry –
had always advised him to do.
“He told me to be friends with my
clients, and to ALWAYS do and recommend
what is in their best interest
and not my own,” Howes recalls.
From the onset of Sapphire Wealth,
Howes’ philosophy has been to synergize
the high quality research skills
he learned while working with Putnam
Investments and MetLife with
strict adherence to compliance, all
the while remaining committed to
fostering earnest relationships with
THE SUIT MAGAZINE - JULY 2014