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This paper contrasts the prevailing individualistic approach of financial literacy measurement and financial education with an educational framework that seeks to equip young people to play an active democratic role and to develop a broader understanding of the financial world. In particular, the framework suggests how important dimensions of financial literacy may be addressed in terms of the individual, the financial industry and government.

We develop a model in which cognitive and affective trust in the leader mediate the relationship between leader behavior and team psychological states that, in turn, drive team performance. The model is tested on a sample of 191 financial services teams in Hong Kong and the U.S. Servant leadership influenced team performance through affect-based trust and team psychological safety. Transformational leadership influenced team performance indirectly through cognition-based trust. Cognition-based trust directly influenced team potency and indirectly (through affect-based trust) influenced team psychological safety. The effects of leader behavior on team performance were fully mediated through the trust in leader variables and the team psychological states. Servant leadership explained an additional 10% of the variance in team performance beyond the effect of transformational leadership. We discuss implications of these results for research on the relationship between leader behavior and team performance, and for efforts to enhance leader development by combining knowledge from different leadership theories. (Contains 1 figure, 3 tables, and 1 footnote.)

Work-family conflict is a pressing research and policy issue. The authors extend previous scholarship on this issue by studying elite employees worries about the effects of long work hours on those in their personal life. This issue is researched cross-nationally in a sample of managers and professionals based in the United States, London, and Hong Kong, all of whom work for one division of a high-commitment, global, financial services firm. Hong Kong respondents are more likely than those in the United States and in England to worry about work-family conflict when controlling for job and family characteristics. The authors argue that the meaning of family varies by national context, in part because of the emphasis in Hong Kong on the extended family as a robust institution with intense ties and obligations. In all three countries, women experience higher levels of work-family conflict than men do. (Contains 2 tables, 2 figures, and 6 notes.)

This article presents the results of a study that investigated the level of assets and debts that female-headed households have in comparison to those of married-couple households and other types of households. The empirical results revealed that the amounts of net worth of married-couple households and male-headed households were significantly larger than that of female-headed households. We discuss policy implications stemming from the findings of the study and recommend that the United States seriously consider creative policy approaches aimed at empowering low-income households such as employment-related supportive policies, microenterprise programs, and Individual Development Accounts programs.

About 25 percent of faculty working in the United States will reportedly consider retiring in the next five to seven years. As one of this 25 percent, the author has been researching what she needs to know to retire. What she found initially was a lot of misinformation. To complicate matters, the world has changed over the past year, causing those teachers who are thinking about retirement to be very apprehensive. In this article, the author offers a strategy she developed that works for her and may help other faculty members who are retiring in a time of economic uncertainty. The author discusses how to make informed decisions about retirement and describes information she compiled from her financial services consultant, the Social Security Administration, the AARP, a university human resources officer, and representatives from the Texas state retirement system. The author selected a specific state as an example to describe an actual retirement system. State systems may, however, vary, and the information from Texas is meant as a general guideline. (Contains 2 footnotes.)

America's moral compass guiding student aid policy is being co-opted by short-sighted, budget-cutting and deficit-reduction policies. This moral compass was threatened, but had "not altogether disappeared" by 1996, according to an article written that year by Thomas A. Flint, then-vice president for financial services at Robert Morris College (IL). The article documents a shift in student aid policy from the original goal of providing equal opportunity to other priorities, such as enforcing loyalty to the US (and rejecting Communism during the Cold War era), Selective Service registration and the war against drugs. In these times of austerity, student aid programs have become an irresistible temptation for lawmakers to raid. In 2011, Congress provided more than $46 billion primarily to cover increasing participation in the Pell Grant program. While this is only 1.2 percent of the $3.8 trillion federal budget, it is tempting for lawmakers to cut. Flint predicted that this would become an issue. The current political and fiscal environment continues to leave little room for important discussions about the merits and morality of federal student aid. The trend that Flint warned of has intensified to the point that almost all student aid policy debate focuses on how the nation can trim student aid spending to bring the federal budget into alignment. When student aid policy is governed by the budget, it is treated as an expense and not a public investment, eluding the nation's moral compass. Americans must recognize that every dollar spent on education is more than just a line item on a federal expense statement--it's an investment in the nation's future success and prosperity.

The University of San Francisco School of Law is one of at least a dozen law schools in the United States where students represent small investors facing big headaches, often because their brokers were more interested in maximizing their own commissions than in giving sound advice. Supervised by law professors, teams of students file motions, interview clients, and make their cases in hearings before arbitration panels. Clinics that used to receive a couple of calls a week have fielded dozens in recent weeks, as investors realize the extent of their losses in the economic downturn. Many cannot afford to hire a lawyer, or their claim is too small to interest one. Most of the clinics started in New York State, with support from settlements that a former state attorney general, Eliot Spitzer, won prosecuting Wall Street firms. More than a half-dozen law schools in the state, including those at Fordham University and Pace University, and New York Law School, now offer free clinics for small-time investors. Similar clinics are operating at Duquesne and Northwestern Universities. In a tanking market, part of the challenge for the student lawyers and clinic staff members is demonstrating that the outcome would have been different if the broker had suggested a wiser investment strategy. Law-school clinics take on cases that private-practice lawyers will not bother with because the potential for recovery is too small. Resolving such a case, however, usually takes longer because students are learning on the job, but clients who have nowhere else to turn rarely complain.

More scholarly articles are being published as FinTech becomes more widely used. It is especially crucial to assess the quality of this large number of research articles and gather useful data. Thus, a bibliometric analysis of these articles may offer insight into current research trends and relevant themes. Globally existing literature about FinTech published between 2019 and 2022 was perused in the SCOPUS database. The articles' bibliometric analysis was carried out using a VOSviewer. Of the 4,532 keywords, 463 met the threshold. The keywords that appeared most were "fintech" (total link strength 2,600), "blockchain" (total link strength 533), "financial inclusion" (total link strength 436), and "financial technology" (total link strength 325) which has a strong link with mobile banking, financial stability, and financial literacy. The present growth patterns indicate a significant rise in the number of international FinTech publications. Within this significant field, the United States produced the most noteworthy contribution. [ABSTRACT FROM AUTHOR]

As the financial economy has expanded beginning in the mid-1980s, it has done so in part by selling more products to individuals and households. Households have had more access to new forms of assets and debts and new ways to fund their lifestyles. This occurred at the same time that income inequality and job insecurity increased dramatically in the USA. We show that a more risk-taking culture that engages in more active financial management emerges amongst the middle and upper middle classes.We suggest that these households are feeling the effects of growing inequality at the top more acutely and they respond by changing how they think about their financial lives. For those lower on the socio-economic status distribution, financial strategies are more of a defensive strategy to get by. Those at the top embrace finance as an opportunity to preserve and extend their lifestyles. [ABSTRACT FROM AUTHOR]

This article examines the risk effect of the Sarbanes-Oxley Act of 2002 (SOX) for the US financial services (FS) industry. The major provisions of SOX relate to increased transparency of the financial reporting system and improved internal governance of firms. The overall results support that SOX reduced the total risk and idiosyncratic risk of FS firms, particularly of banks, savings and insurance companies. Yet, this article finds an increase in systematic risk of banks, savings and insurance companies. This outcome may be due to increased financial integration, innovation, globalization and deregulation. [ABSTRACT FROM AUTHOR]

What are the ethical obligations of the sellers of financial products to their customers? Stockbrokers in the U.S. have a legal and ethical requirement to recommend only 'suitable' investments to their customers. This is a fairly weak standard. Currently, there are proposals to raise the standard to a fiduciary one in which the recommendations would have to be in the best interests of the clients. Brokers sell solutions to financial problems. Similar to an auto mechanic or a doctor, the product often consists of both the professional advice and its implementation. There are numerous conflicts of interest between brokerage firms and their customers in that the products that pay the highest commissions may not be the best ones for the customers. The societal perspective adds complications, however. Society depends on modern financial markets to raise capital for productive enterprises and to spread risk. Issuers of financial products need distribution channels for their products just like the producers of any other products. Commissions create powerful incentives for the distribution channels, but at the same time produce conflicts of interest-a type of ethical pollution. Just as our society tolerates some pollution as a byproduct of other useful activities, it may be useful to tolerate some of these financial conflicts of interest. The nature of the relationship should govern the ethical standard. Those selling advice, regardless of how they label themselves, should adhere to a best-interest fiduciary standard. More limited relationships should be limited to the mandate involved in the relationship. [ABSTRACT FROM AUTHOR]

A topic of recent interest in the retail financial sector has been the growth of credit unions or 'pure cooperatives'. Past credit union researchers built mathematical models of credit union operations. These models identified important operating characteristics but were modeled under assumptions of static operating environments. The model presented in this paper departs from the traditional static models and examines dynamic operation for a United States credit union. Its inter-temporal structure clarifies a number of issues-such as optimal equity retention and inter-temporal rate policy-not addressed by earlier studies. Given initial conditions, the model specifies equity retention and inter-temporal deposit and loan rate policies until an equilibrium state is reached. [ABSTRACT FROM AUTHOR]

Purpose – This paper aims to examine the relationship between geographical diversification and the underwriting performance for the world's largest reinsurance groups. It also aims to verify that the form and nature of the relationship between diversification and performance follow an S-shaped curve with increased diversification of the largest reinsurance groups. Design/methodology/approach – Analysis in the paper is based on the concept of Geographical Spread Index defined and calculated by UNCTAD. Data on largest reinsurance groups in the world are published annually by Standard & Poor's for only a limited number of reinsurance groups. To overcome the small sample problem, a re-sampling procedure from the original sample, similar to a bootstrap sample, is used to validate the results. Findings – The results show that, overall, international geographical diversification has a positive effect on a reinsurance firm's underwriting performance but that this relationship is not linear. It rather follows an S-shaped curve. Although data limitation does not allow more sophisticated investigations, the results reported in this paper are nevertheless significant. It seems that at an early stage of expansion in proximate markets there are efficiency gains for the firm. With increased internationalization there may be a diminution in performance because of higher transaction costs or learning costs for new markets. Further expansion in foreign markets brings back efficiency and higher performance. Research limitations/implications – Only cross-section data for a small sample of companies are available and therefore it is not possible to analyze the dynamics of geographical diversification. A firm may deliberately expand for long-term strategy reasons such as market share even though this is detrimental to medium-run performance. Also, the analysis cannot provide any answer to the existence or not of a maximum level of international diversification beyond which performance would decline. Originality/value – In the literature on firm diversification in the financial services sector, product diversification and performance has received significant attention with mixed results but except for a few papers, the internationalization aspect has not been examined. The reinsurance sector is important since reinsurance activities are, by nature, more geographically diversified than other financial activities. Furthermore, the largest European reinsurance groups dominate this worldwide market and many reinsurance companies have, in the past decade, increased their foreign direct investment and acquired other companies in part because of the belief that only very large players will have the cost advantages necessary to remain competitive in global markets. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to review the principal provisions of the Jumpstart Our Business Startups (JOBS) Act, which was enacted in April 2012 and represents significant legislative reform of securities regulation in the USA. Design/methodology/approach – The paper examines the modified US securities regulatory regime introduced for initial public offerings and SEC reporting by a newly designated class of smaller securities issuers referred to as "emerging growth companies" and summarizes reforms to the regulation of capital-raising transactions by small issuers and other companies that are intended to facilitate the creation of new jobs by easing regulatory burdens. Findings – The JOBS Act should meet its objective of providing emerging growth companies, at reduced cost, with an orderly transition from a private existence with relatively few securities-law concerns to a public one with numerous compliance obligations. Companies also will have greater opportunities to access capital through the availability of additional exemptions from Securities Act registration and the elimination of some restrictions on offering-related communications with investors. The relaxation or elimination of long-accepted methods for minimizing fraud and abuse in securities offerings, however, could result in a significant increase in investment scams and other wrongdoing. Originality/value – The paper provides expert guidance from experienced financial services lawyers. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to explain the meaning and legal impact of two September 2011 Supreme Court of Delaware decisions regarding challenges to the validity of life insurance policies sold to investors as life settlements on the basis of a lack of an insurable interest after the expiration of the two-year contestability period. Design/methodology/approach – The paper outlines the background, factual circumstances, and court decisions on Lincoln Nat. Life Ins. Co. v. Joseph Schlanger 2006 Ins. Trust and PHL Variable Ins. Co. v. Price Dawe 2006 Ins. Trust. Findings – The court certified three legal questions concerning life insurance policies sold to investors as life settlements: whether two-year statutory contestability limits apply to insurance policies deemed void for lack of an insurable interest; whether the Delaware statute requiring an insurable interest is violated when the insured individual procures a life insurance policy on his or her own life and immediately transfers the policy to a person without an insurable interest; and whether Delaware law confers an insurable interest upon a trustee of a trust established by an individual insured when at the time of application for a life insurance policy the insured intends to transfer the beneficial interest of the trust to a third-party having no insurable interest on the individual insured's life. Practical implications – Investors may require legal comfort concerning insurable interest for policies beyond the two-year contestability period, but the Delaware court's ruling explicitly affirms the legality of selling life insurance policies to third-party investors. Originality/value – The paper provides expert guidance from experienced financial services lawyers. [ABSTRACT FROM AUTHOR]

Purpose - This study seeks to determine factors that encourage post-meeting work activity in a software development group by assessing attendee diversity (functional, staffing and tenure), meeting size, and meeting history. Design/methodology/approach - One year's worth of meeting data from a software development group in a US-based financial services company were collected and analyzed. A binary logistic regression analysis was utilized to determine the impact of diversity, meeting size, and meeting history on the likelihood of post-meeting work activity. Findings - Tenure diversity and meeting history for each meeting event significantly contribute to the likelihood of post-meeting work activity. Research limitations/implications - A lack of variance in the data does not allow for the examination of staffing diversity. Further, generalizability of findings is limited since data come entirely from one organization. Findings suggest that meeting characteristics, specifically tenure diversity and meeting history, can improve the likelihood of post-meeting work activity occurring. Practical implications - Findings illustrate that management can leverage tenure diversity and meeting history within a software development group to encourage post-meeting work activity. Originality/value - All organizations employ meetings, and research that clarifies how to extract maximum value from meeting events is critical. This study provides a first step in uncovering specific meeting characteristics which are most likely to impact post-meeting work activity. [ABSTRACT FROM AUTHOR]

With a focus on the financial services industry, the current study takes a contingency theory approach to the relationships between market orientation and a variety of marketing strategy concepts, including profitability, a firm's Miles and Snow strategy type, market growth, service growth, service focus, market coverage, the Porter strategy group, and strategic marketing initiative. Data for the study were gathered from a survey of chief executives from credit unions in the U.S. The results of the study are mixed. In particular, the findings suggest that despite the perceptions of management, it is the less aggressive and less costly approaches to market orientation and marketing strategy that actually pay off in terms of objectively measured ROA. The pattern that emerges seems to suggest that if the goal is overall firm profitability as measured by ROA, then the recommendation may be to focus on more conservative strategies combined with lower levels of market orientation. Additionally, the total number of strategic alignments is also relevant to profit performance. It was shown that companies with a higher number of recommended "fits" between market orientation and their marketing strategies achieved a larger ROA. [ABSTRACT FROM AUTHOR]

The offshore outsourcing of financial and other services has generated considerable political heat in Western countries over the past decade. In this paper we subject the realities of offshoring to observation at company level by unpacking the strategies underlying the offshoring decision and related ethical considerations, in respect of a US-based flagship financial services firm renowned as exemplary in international business process engineering and corporate social responsibility. Through interviews with senior executives in the case organization, and with leading management consultants in the field, we build a picture of the potentially contradictory strategic logics which have characterized the approach to offshore outsourcing in the company over more than a decade. [ABSTRACT FROM AUTHOR]

Purpose – This paper aims to investigate how the US financial services organizations (FSOs) provided marketing information and the way they strategically used various appeals through their advertising before and during the current financial crisis. Design/methodology/approach – This takes the form of a content analysis examining a total of 2,480 financial services ads (FSA) in print magazines within two periods – the two years before the crisis (2005 to 2006) and the two years during the crisis (2007 to 2008). Findings – This study showed three significant findings: because of the economic struggle, there was a significant decline across the two periods in the total number of yearly FSA; the economic crisis led to a significant increase in the use of informational message strategies across all FSOs; and financial value and atmospherics appeals were predominant after the crisis. However, each FSO used appeals in a different way. Research limitations/implications – This study focused on only print media. A future research project aimed at other traditional media such as television and new media such as the internet or weblogs could provide additional analysis of financial advertising strategies. Practical implications – The findings of this study suggest that FSOs may rely much more heavily on informational than on transformational approaches during an economic crisis. The findings may provide further valuable implications for non-profit institutions and international marketers. Originality/value – This study contributes in several ways to understanding of the strategic communicative reactions of FSOs during the crisis. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to describe interpretive and compliance issues arising under the Labor Department's interim final regulations under the statutory exemption for the provision of services provided by Section 408(b)(2) of ERISA, which will become effective on January 1, 2012. Design/methodology/approach – The paper analyzes the published interim final regulations and considers significant comments filed in response to the proposed regulations. Findings – Effective January 1, 2012, covered service providers who rely on the statutory exemption for the provision of services provided by Section 408(b)(2) must begin complying with the interim final amendments to the regulations under Section 408(b)(2) (the "Regulation"). Among other changes, the Regulation will require service providers to provide additional disclosures of direct and indirect compensation and to identify whether they expect that they will be providing services as a fiduciary or as a registered investment adviser. The primary purpose of the Regulation is to assist plan sponsors in evaluating service provider relationships, including total compensation that will be received by the service provider and conflicts of interests to which the service provider may be subject. The Regulation will apply to both new and existing service provider arrangements on January 1, 2012. Failure to comply with the Regulation may result in the assessment of excise taxes under Section 4975 of the Internal Revenue Code unless other exemptive relief is available. Service provider arrangements may be eligible for exemptive relief under certain other statutory and administrative exemptions. Originality/value – The paper describes possible compliance issues that may arise under the Regulation and identifies and evaluates interpretive and compliance issues that have been noted since the proposed amendments were published. [ABSTRACT FROM AUTHOR]

Purpose – The aim of this paper is to explain the provisions of the US Foreign Corrupt Practices Act that may be applicable to investment advisers seeking investments from foreign governments. Design/methodology/approach – The paper explains the background of the FCPA and its applicability to investment advisers, recommends policies and procedures for advisers to employ to reduce the risk of FCPA actions, recommends due diligence practices for third-party relationships, and reminds advisers seeking business opportunities outside the USA of the importance of compliance with foreign anti-bribery laws. Findings – The FCPA applies to investment advisers whenever they seek a benefit, directly or indirectly, from a foreign official, as in the course of seeking investments in a sovereign wealth fund. Practical implications – Given the SEC's increased interest in pay-to-play activities, investment advisers who are seeking investments outside the USA should carefully review their existing FCPA policies, or develop new policies if they have not done so already. Originality/value – The paper provides practical guidance from experienced financial services lawyers. [ABSTRACT FROM AUTHOR]

Purpose – This paper seeks to explain Financial Industry Regulatory Authority ("FINRA") Rule 4530, which requires members to report to FINRA certain internal and external findings of violative conduct and quarterly statistical and summary customer complaint information. Design/methodology/approach – The paper explains the background and provides an overview of FINRA Rule 4530; analyzes key provisions of the Rule, including the way it differs from legacy NASD and New York Stock Exchange Reporting Rules; and discusses next steps for FINRA members. Findings – FINRA Rule 4530 requires members to promptly report findings of internal and external violations and provides interpretive guidance regarding these requirements. The new Rule imposes obligations beyond those set forth in current NASD Rule 3070, requires reporting of internal findings, and alters the now familiar materiality standard applied to NYSE Rule 351(a). Practical implications – The new Rule will require members to enhance their policies and procedures to address the reporting of internal findings to define potentially reportable violations, identify decision-makers to assess potential violations, create or modify reporting escalation procedures, and institute appropriate controls over reporting. Members may want to review their internal audit processes to reflect the new guidance regarding reporting based on internal findings of violations. Originality/value – The paper provides practical guidance from expert securities lawyers. [ABSTRACT FROM AUTHOR]

Purpose - The purpose of this paper is to explain the SEC's proposal to establish a new framework for mutual fund distribution charges by replacing Rule 12b-1 with a new Rule 12b-2 combined with an amended Rule 6c-10. Design/methodology/approach - The paper discusses the background of ongoing distribution charges permitted under Rule 12b-1; explains the SEC's proposal to establish a hard cap to the percentage rate of the charges that can be deducted from funds over time and to require fund boards of directors to make annual determinations of the reasonableness, fairness, and effectiveness of front-end sales loads and ongoing sales charges; provides a summary of the new cap; explains the proposed disclosure changes, fee externalization alternative, and timetable and compliance dates; discusses various commercial and legal issues to consider in light of the proposal. Findings - Long uncomfortable with a registered mutual fund's use of its own assets to pay for the distribution of its shares, the SEC is proposing a completely new approach. Originality/value - The paper provides expert guidance from experienced financial services lawyers. [ABSTRACT FROM AUTHOR]

Purpose - The purpose of this paper is to describe guidance ("the Guidance") issued by the Financial Crimes Enforcement Network ("FinCEN"), the Federal Banking Regulators and the Securities and Exchange Commission on obtaining beneficial ownership information for certain accounts and customer relationships. Design/methodology/approach - The paper summarizes the principal content of the Guidance, including the importance of customer due diligence (CDD) policies as the cornerstone of a Bank Secrecy Act/Anti-Money-Laundering program, the need for a CDD program to identify and verify the beneficial owners of an account, steps that should be included in CDD procedures to protect against heightened risks related to the beneficial owners of an account, enhanced due diligence that is appropriate for accounts that pose heightened risk, the suggestion in the Guidance to implement CDD policies and procedures on an enterprise-wide basis, and requirements for private bank account and correspondent bank account due diligence programs. Findings - The Guidance appears to expand certain concepts previously applied to banks by the Federal Banking Regulators to other financial institutions, including broker-dealers, futures commission merchants, mutual funds, insurance companies, and money services businesses. It also appears to expand concepts set forth in Rule 312 of the PATRIOT Act beyond private banking and correspondent banking. Originality/value - The paper provides expert guidance from experienced financial services lawyers. [ABSTRACT FROM AUTHOR]

Purpose - The purpose of the paper is to summarize key provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act Affecting SEC and CFTC Enforcement. Design/methodology/approach - The paper summarizes provisions on new SEC causes of action, including greater power to bring aiding-and-abetting claims and authorization to bring cases based on "control person" liability; other new SEC powers, including broader monetary penalty authority in administrative proceedings, a collateral bar that bars a person from any part of the securities business, codification of the SEC's extraterritorial enforcement jurisdiction, and expansion of nationwide service of process to federal court cases; monetary incentives and protections for whistleblowers; increased SEC funding; and CFTC enforcement powers, including a fraud liability provision, expanded liability for manipulation or providing false or misleading information, prohibition of various practices, authority to establish business conduct requirements, nationwide subpoena power, and the ability to seek various sanctions. Findings - Dodd-Frank has ramped up the enforcement mandates of the SEC and the CFTC more than at any time since the agencies were created. Their jurisdictional reach is broader, the causes of action they can bring have increased, and the remedies have expanded. Practical implications - Public companies, regulated entities, and hedge funds, as well as their officers, directors, and employees, should brace themselves and prepare for a significant increase in enforcement activity by both the SEC and the CFTC. Originality/value - The paper provides expert guidance from experienced financial services lawyers. [ABSTRACT FROM AUTHOR]

Purpose - The purpose of this paper is to explain the June 24, 2010 decision of the US Supreme Court in Morrison v. National Australia Bank Ltd concerning the territorial scope of the Securities Exchange Act of 1934 ("Exchange Act"). Design/methodology/approach - The paper describes the complaint, the reasoning of the earlier lower court decision, the reasoning of the Supreme Court decision, and the practical effects of the Supreme Court decision. Findings - Addressing the territorial scope of the Exchange Act for the first time, the Court rejected the widely applied "conduct" and "effects" tests and instead prescribed a new "transactional" test. Finding no affirmative indication that §10(b) of the Act applies extraterritorially; the Court found that its application depends on whether the purchases and sales of securities were made specifically in the USA, and not upon the place where a deception may have originated. Originality/value - The paper provides expert guidance from financial services lawyers. [ABSTRACT FROM AUTHOR]

Purpose - The purpose of this paper is to to summarize Advisers Act registration implications for non-US advisers that now rely on the "private adviser" exemption from Advisers Act registration and to summarize the principal changes affecting investors in funds managed by non-US advisers contained in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Design/methodology/approach - The paper explains the elimination of the "private adviser" exemption and the creation of the narrower "foreign private adviser" and other exemptions from Adviser Act registration, reporting and recordkeeping requirements relating to private funds; the Dodd-Frank Act's provisions for information sharing by the SEC and the confidentiality of private fund information; the "Volcker Rule's" limitation of investment by banking entities and non-bank financial companies in hedge funds and private equity funds; changes in the definition of "accredited investor"; and the future adjustment of the "qualified client" test for inflation. Findings - The Dodd-Frank Act will require many investment advisers and fund managers with their principal offices and places of business outside the USA to register with the SEC and to observe, with respect to US clients, the full spectrum of SEC regulations that apply to registered investment advisers. The Act will also impose new disclosure and recordkeeping requirements on many non-US advisers. Originality/value - The paper provides expert guidance from experienced financial services lawyers. [ABSTRACT FROM AUTHOR]

Purpose - The purpose of the paper is to summarize and discuss selected investor-protection and other related enhancements to federal securities regulation contained in the Dodd-Frank Wall Street Reform and Consumer Protection Act. Design/methodology/approach - The paper discusses the following investor protections and related enhancements: enhanced whistleblower incentives and protections; expanded SEC investor-protection administrative functions including the establishment of an Office of the Investor Advocate, the appointment of an Ombudsman, and the establishment on a permanent basis of an Investor Advisory Committee; expanded enforcement authority against aiders and abettors of securities violations; evaluation of the existing standards of care employed by broker-dealers and investment advisers; a narrowing of exemptions from registration under the Securities Act, including by directing the SEC to enact rules to disqualify "bad actors" from relying on Rule 506 of Regulation D and adjusting the definition of "accredited investor" for purposes of the SEC's rules under the Securities Act; an exemption for certain small companies from the auditor attestation requirements of Sarbanes-Oxley; provisions to increase the oversight and accountability of credit rating agencies; and steps to bolster the regulatory oversight of the municipal securities market, including by creating a new class of regulated intermediaries - "municipal advisors" Findings - The Dodd-Frank Act leaves many critical issues to be fleshed out through further SEC rulemaking and in the implementation phase, including: procedures regarding whistleblower information submitted to the SEC; the actual role of the Office of the Investor Advocate; whether the SEC will adopt a broker-dealer fiduciary-duty standard of care; additional texture on rules disqualifying bad actors from relying on Rule 506 of Regulation D; adjustments to net worth requirements related to accredited investor status; rules on disclosure of credit ratings in registration statements; and qualification standards for municipal advisors. Practical implications - Public companies and other persons affected by the Dodd-Frank Act should: keep abreast of key developments in the rulemaking phase; possibly participate in the rulemaking process: develop realistic strategies to respond to the proposed rules; develop compliance action plans; and review whistleblower-related compliance policies and procedures. Originality/value - The paper provides expert guidance from experienced securities and financial services lawyers. [ABSTRACT FROM AUTHOR]

Purpose - The purpose of this paper is to explain certain SEC and state registration, disclosure, and recordkeeping requirements for US and non-US investment advisers and fund managers as defined in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Design/methodology/approach - The paper explains SEC and US state registration requirements; the elimination of the "private adviser" exemption; the creation of new, narrower adviser registration exemptions; reporting and recordkeeping requirements relating to private funds; information and confidentiality provisions for private funds; the SEC's authority to make rules and regulations defining technical, trade, and other terms used in the amendments set forth in the Act; provisions of the "Volcker Rule" concerning banking entities' ownership interests in hedge funds and private equity funds; the adjustment of the "qualified client" test for inflation; the definition of an "accredited investor"; and disqualifications from using Regulation D. Findings - The Act will require many US and non-US investment advisers and fund managers to register with the SEC under the Investment Advisers Act of 1940, particularly those advisers that have previously relied on the "private adviser" exemption from SEC registration, which has been eliminated by the Act. The Act will also impose new disclosure and recordkeeping requirements on many investment advisers, including some who are not required to register with the SEC. Originality/value - The paper provides expert guidance from experienced financial services lawyers. [ABSTRACT FROM AUTHOR]

Purpose - For agricultural bankers, agribusiness managers, and salespeople, understanding customers and their preferences and behaviors is crucial to success. The two goals of this paper are first to identify today's distinct market segments for financial products for US crop and livestock commercial producers, and second to predict segment membership based on observable characteristics. Design/methodology/approach - Cluster analysis was used to identify four distinct buyer segments for the purchase of financial products and services by US crop and livestock commercial producers. A multinomial logit model was used to predict segment membership based on demographic, behavioral, and business management factors. Findings - Although, traditionally, the financial services industry has segmented the market for commercial producers based primarily on sales/size categories; this research shows that this factor is not a significant predictor of behavior. Instead, this paper proposes a segmentation based on buying behaviors and identify four distinct market segments for financial products and services for US crop and livestock commercial producers: balance, price, convenience, and service. The balance segment being by far the largest segment. Research limitations/implications - Although the sample size means is representative of the US ag population, it may or may not be representative of the customers of a regional lender. Readers who are lenders are therefore advised to apply this methodology to their customer database and use the results of the paper as a quality check or benchmarking exercise. The findings also raise a number of issues, which require further research, such as how to implement a targeted marketing plan when there is one dominant segment and two other distinct segments. Practical implications - Lenders need to reconsider their market segmentation methodology. Originality/value - While there has been some research on market segments for retail financial markets, apparently there has been no work on market segments for agricultural financial products. This study exploits a unique dataset of 2,575 responses to Purdue's Large Commercial Producer Survey and the 2008 survey is the first time the survey included a series of detailed questions on how producers choose a financial service provider. This paper's findings will benefit agricultural bankers and agribusinesses that offer financing to their customers. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to report on a survey about the personal financial planning attitudes of MBA students in the USA. Design/methodology/approach – The study surveyed 206 MBA students about their attitudes to personal financial planning. Participants were asked about their level of knowledge, whether they had prepared components of a financial plan, where they might seek assistance in such a process and the criteria for selecting a financial planner. In addition, participants were asked to indicate their level of confidence in a financial plan's capacity to help them meet their long-term needs and the likelihood that they would implement such a plan. Findings – The findings indicate that, while most respondents feel both that financial planning is important and that they are interested in developing a financial plan, very few feel that they have the necessary skills and knowledge to prepare their own plan. In addition, the participants indicated a strong preference for professional personal financial planning advice. The study also indicates that less than 13 percent have prepared a comprehensive personal financial plan. When asked to identify the one professional from whom they would seek advice, certified financial planners were the preferred resource. Research limitations/implications – While the results are not generalizable to the wider population, the views of this group are important because one might expect that educated individuals would be both more interested in personal financial planning and more capable of preparing their own plans compared with average Americans. Practical implications – The study presents some implications for practice and financial literacy education from a US perspective. Originality/value – A perceived need of respondents is to feel that their financial planner will put their needs first. While some professionals believe this to be the hallmark of "independence," the respondents placed less importance on planner independence. In order to foster client confidence, planners must act in ways that convey clearly the primacy of their clients' needs. [ABSTRACT FROM AUTHOR]

Purpose -- The purpose of this paper is to explain and analyze recent US Congressional, Obama Administration, and financial services industry initiatives to reform and regulate the market for OTC derivatives. Design/methodology/approach -- The paper outlines Congressional committee bills, other Obama Administration initiatives, and industry self-regulatory initiatives and discusses underlying current issues such as which derivatives would and would not have to be cleared through central counterparties (CCPs); how standardized and customized derivatives would be distinguished from each other; potential margin, business conduct, reporting, and recordkeeping standards for OTC derivatives dealers; how fraud, market manipulation, and other market abuses would be policed; possible limitations on the types of parties that may participate in unregulated derivatives; possible resolution of the sometimes confusing and overlapping authority of the SEC and CFTC over OTC derivatives; how and by which federal or state authority credit default swaps (CDS) might be regulated; the potential for regulatory arbitrage; and the danger that stringent regulation in the USA will drive OTC derivatives business offshore. Findings -- Unlike markets for other financial instruments, derivatives market participants, largely through ISDA, have for some time cooperated closely with the New York Fed and engaged in a myriad self-policing activities. Time will tell whether this existing framework, combined with the redoubled self-policing efforts of market participants, will cause policymakers to seek appropriate legislation that will not threaten the preservation of the OTC derivatives market in the USA. Originality/value -- The paper presents a clear and detailed guide and explanation of recent regulatory initiatives and underlying issues. [ABSTRACT FROM AUTHOR]