Cash Sweep: A Cost of Doing Business or A Fiduciary Breach?
December 3, 2019: 4:00 pm – 6:00 pm
As interest rates creep lower, banks, custodians and money managers are finding creative ways to generate revenue. Though it’s not a new practice, many are forcing cash into sweep bank accounts and paying a lower rate of return than offered by comparable money markets. A recent study pointed out that the average RIA held about 10% in cash on their book at any given time. If that cash is earning significantly less than it could be earning in a money market fund, what are the implications for your practice? Are there other options? Are they worth the time, effort and expense to execute them?
- Discuss the background of the industry practice of sweep account skimming
- Identify several approaches that different firms in the industry are taking to counteract this practice
- Talk about the long term implications of this practice and possible regulatory intervention scenarios
Who Should Attend?
- RIAs, PMs, COOs, CEOs, CCOs
Senior Research Fellow at Mercatus Center, George Mason University
Kevin J. Galvin, CFP, CFA
Principal; Director of Research; Advisor, Hopwood Financial Services
Josh Olds, CFA
Partner, New Potomac Partners, LLC
CFA Institute PL Credit Hour(s): 1 Credit.
- CFAW Member: $40
- Non-Member: $60