The cash conflict in the wealth management industry

Here’s a sneak peak at the next cover story in Financial Planning. This month, Tobias Salinger took an in-depth look at cash sweeps, the lucrative practice for brokerages, but one that often leaves clients in the dark.

“Some argue that the sweeps help pay for commission-free trades, boost access to capital and expand FDIC coverage of cash deposits. Others question whether advisors and their clients are aware that there is an estimated $1 trillion in brokerage cash sweeps that they could move into money markets, certificates of deposit and other higher-yielding accounts to tap into those climbing interest rates themselves.”

Check out the main story here, as well as a breakdown of how much clients vs. firms get when money is swept.

Thanks for reading.