Working With Legacy Investment Positions, With Rich Chen

Clients sometimes come to the table with legacy investment positions, from inherited stock passed down from a loved one to large amounts of employer stock, that the client does not want to sell. Which can create a challenge for advisors in managing the client's total portfolio and raises questions about how (and whether) to charge fees on the legacy position. In this episode, we are joined by Rich Chen, founder of Brightstar Law Group, to explore the fiduciary and compliance challenges advisors can face when working with legacy stock positions. You'll learn why simply accepting a client's decision not to sell may not be sufficient, how mismatched expectations between the advisor and their client can create legal and regulatory risk, and what duty of care and loyalty mean when an advisor is working around client-imposed investment restrictions.  Listen in to hear best practices for documenting these discussions with clients, why concentrated positions need to be reassessed over time, and what advisors should be prepared to explain during an SEC examination. Rich also breaks down the different options advisors have for charging on legacy positions and how there isn't necessarily one 'right' answer.  For show notes and a full episode transcript visit: www.kitces.com/FAT9   Click here to learn more about becoming a Kitces.com premier member.