​Cash Sweep: A Cost of Doing Business or A Fiduciary Breach?

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?

Learning Objectives:

1. Discuss the background of the industry practice of sweep account skimming
2. Identify several approaches that different firms in the industry are taking to counteract this practice
3. Talk about the long term implications of this practice and possible regulatory intervention scenarios

Who Should Attend?

• RIAs, PMs, COOs, CEOs, CCOs

Speakers:

David Beckworth
Senior Research Fellow at Mercatus Center, George Mason University

Kevin J. Galvin, CFP, CFA
Principal; Director of Research; Advisor, Hopwood Financial Services

Moderator:

Josh Olds, CFA
Partner, New Potomac Partners, LLC

Qualifications:

CFA Institute PL Credit Hour(s): 1 Credit.

Registration:

• CFAW Member: $40
• Non-Member: $60