On Bernie Madoff and Working Longer
Contributor Scott Simon addresses two unrelated--albeit important--subjects for advisors.
I thought that I'd kick off the new year by discussing two disparate subjects--neither of which merits coverage in its own column, but both of which I believe are of importance to advisors. The first is Bernie Madoff, who was in the news last month as we marked the 10-year anniversary of his arrest for securities fraud. The second subject is one which a colleague first brought to my attention years ago: the double-barreled benefit achieved by working longer.
Let's Not Forget: Bernie Madoff Was a Broker/Dealer
The former chariman of the Securities Industry and Financial Markets Association (the trade association for the securities industry) wrote an article recently entitled "Let's Not Forget--Bernie Madoff was a Fiduciary.” That’s right--Madoff, mastermind of the greatest Ponzi scheme in history--was an RIA fiduciary subject to the Investment Advisers Act of 1940 ('40 Act) for just over two years from Sept. 12, 2006, to Dec.11, 2008. (On Aug. 10, 2006, Madoff agreed to the SEC's requirement that, because he was engaged in providing discretionary asset management, he register as an investment adviser.)