an arrangement between a stockbroker and his or her client whereby the stockbroker makes all investment decisions. It is the opposite of an advisory management arrangement.
Trade Radar Operator submits: Consumer discretionary stocks have been in the news lately. As oil prices moderated and the U.S. dollar appreciated, the stocks shot upward. The consumer discretionary ETFs, naturally, followed suit.There are a number of fund companies that offer ETFs focused on the consumer discretionary sector. They...
This study investigates whether a firm's corporate governance practices have an effect on the quality of its publicly released financial information. In particular, it examines the relationship between audit committee and board of director's characteristics and the extent of corporate earnings management as measured by the level of positive and...
ERISA provisions on fiduciary liability can be very confusing. This article looks at the blurred lines surrounding plan design and fiduciary liability-or are they blurred? It discusses about plan design is a settlor function, not a fiduciary function. In other words, plan design is left to the employer as the...
"For BCM to be truly effective, organizations need a central department or initiative that has both executive-level support and adequate resources. But in many cases, BCM efforts do not get what they need because they are considered discretionary projects that do not contribute directly to the organization’s profitability. Yet, at...
Daniel Miller submits: Consumer Discretionary stocks have surged during the past month, more than any other Global Industry Classification Standard [GISC] sector, nearing their previous advance of 8.9 percent in October 2003. As of Thursday’s close, the S&P 500 Consumer Discretionary Index has risen 7.5% so far during the month...
Recently there has been a flurry of articles criticizing discretionary overdraft services. My first reaction was to view the authors as zealot community activists with a paternalistic approach as self-appointed guardians who feel they, knowing what's best, must protect the uninformed public from themselves. However, I couldn't dismiss the...
This paper examines the impact of measuring accruals as the change in successive balance sheet accounts, as opposed to measuring accruals directly from the statement of cash flows. The primary finding is that studies using a balance sheet approach to test for earnings management are potentially contaminated. In particular, if...
Accenture has developed a number of unique IT capability diagnostics that focus on the value delivered rather than benchmark how much is spent. The Accenture IT Investment and Spending Diagnostic, for example, evaluates current discretionary and non-discretionary spending. More importantly, the diagnostic provides a portfolio view of discretionary spending, showing...
Three months from now, brokers will no longer be allowed to make discretionary trades in regular brokerage or trading accounts. A new rule from the Securities and Exchange Commission will require registered reps to employ fee-based advisory accounts when using discretion. "Most brokers are also registered as investment advisers,"...
Fidelity Investments is preparing for a new push into the Nordic markets with a discretionary management offering for institutional investors. Fidelity Investments is preparing for a new push into the Nordic markets with a discretionary management offering for institutional investors.
This paper examines the tax reporting consequences of financial reporting discretion. Using a matched sample of financial statements with tax returns, the paper estimates the extent discretionary financial accounting accruals are correlated with discretionary federal tax accruals. The methodology takes advantage of the contemporaneous nature of reporting to mitigate the...
NEW YORK -- Morgan Stanley's Global Wealth Management Group GWMG announced today that it has launched a new non-discretionary advisory account, "Morgan Stanley Advisory." This industry-leading account was created for clients who want to benefit from the advice of a Financial Advisor, but who wish to retain decision making authority...
Charges, a lack of past performance figures and the undermining of the adviser's role are the main factors holding back IFAs from using discretionary managers, experts at an industry debate concluded. Charges, a lack of past performance figures and the undermining of the adviser's...
Jun 21, 2005 (Money Management - ABIX via COMTEX) Discretionary trusts are popular among taxpayers who want to minimise their tax liabilities. The Australian Taxation Office ATO is carefully monitoring the use of trusts for tax minimisation, believing that the trust structure is often...
Nov 22, 2001 Money Management ABIX via COMTEX -- The Australian Taxation Office ATO has issued a decision on discretionary trusts. Henceforth, interest on discretionary trusts will be subject to capital gains tax CGT. Principal of Deloitte Touche Tohmatsu, Craig Holland, says that the...
On April 2, by a vote of 52 to 46, the Senate adopted a sense of the Senate amendment to the Budget Resolution (S Con Res 86) sponsored by Sen. Sam Brownback (R.-Kan.) that called for a change in budget law to allow savings from the elimination of discretionary spending...
NEW YORK -- Acadia Realty Trust (NYSE:AKR - "Acadia") today announced the formation of its third discretionary investment fund, Acadia Strategic Opportunity Fund III LLC ("Fund III"). Fund III will be capitalized with $500 million of discretionary institutional capital, which will enable Acadia to acquire or develop approximately $1.5 billion...
This paper addresses two questions related to the use of discretion over revenues. First, do firms use discretion in revenues to manage earnings to meet earnings targets? Second, do firms manage revenues to meet revenue targets? To answer these questions, the author models a common form of discretionary revenues and...
When the administrator of an employer's 401k plan lacked discretionary authority or control over the management and administration of the plan, it cannot be deemed a fiduciary under the Employee Retirement Income Security Act, according to the 9th When the administrator of an employer's 401k...
