At MarketCounsel Summit 2011, some hard-hitting speeches followed by 'Mohita Madness'

Brooke’s Note: I sent Dina Hampton to Florida to report on how advisors are learning how to dot the i’s and cross the t’s in compliance from some of the industry’s best. Dull stuff? Now I suspect she may also be having fun! Look for her bigger piece on Monday covering the content of some of the best speeches.

After sitting through absorbing, and at times anxiety-provoking, addresses by financial-services industry heavyweights on the opening day of MarketCounsel Summit 2011, many of the 200 attendees repaired to a courtyard overlooking the elegant grounds of the vast, Spanish villa-era Biltmore Hotel, to try their hands at creating the mojito – Miami’s most famous cocktail.

Advisors quickly formed teams, branding themselves with exotic names like “Carmen Miranda” and “The Latin Screwdrivers” and, under the guidance of a professional mixologist, set to work at their respective tables trying to make the ultimate mojito.

The Biltmore Hotel in Coral Gables,
overlooking what is said to be
the nation’s largest pool.

After a five-hour delay at O’Hare airport, Michael Fuji arrived at The Biltmore just in time for the opening session delivered by Pershing Advisor Solutions LLC chief Mark Tibergien. See: What headway Pershing’s RIA unit is making after four years under Mark Tibergien.

Fuji bolted from Merrill Lynch in 2007, on the crest of the breakaway broker surge, to create Bay Reef Capital LLC in Chicago, of which he is president and sole proprietor.

Scary SRO prospect

MarketCounsel was the “first and only” group he approached to get his enterprise off the ground. It now has $20 million in assets under management. Asked what worries him most about the current regulatory landscape, Fuji cited the possibility of single or multiple self-regulatory organizations being formed to oversee investment advisors – the ramifications of which had been vividly described earlier by MarketCounsel’s Brian Hamburger and Daniel Bernstein. “It’s a scary prospect,” Fuji says.

Michael Fuji left Merrill Lynch in
2007 to start his one-man RIA.

Daniel Morrison and his wife, Beth, were on the terrace enjoying the view. He is a founding partner of Jacob William Advisory, a Timonium, Md., firm with $60 million in AUM. Morrison broke out of the broker-dealer world in 2009 to become a pure registered investment advisor. Like Fuji, it’s the X factor of the SRO situation that’s keeping him up nights. It’s a matter of when – not if – one or more will be established, Morrison says, but after that, that, everything’s up for grabs. “No one has the answers,” he says.

Dan Morrison, with wife, Beth: "No
one has the answers," about where
financial regulation is headed.

In lieu of participating in the MarketCounsel Foundation Golf Tournament, played on the hotel’s 18-hole, par-71, championship golf course that morning, Morrison attended the pre-conference workshop and found it “user-friendly.”

Climbing the ladder

Jen Easley began her career at Gitterman & Associates Wealth Management LLC in Iselin, N.J., nine years ago as an administrative assistant and worked her way up to the No. 2 spot in the regulatory division a year and a half ago. Her greatest concerns about the future of regulation center around potential changes in record keeping.

Jen Easley went from administrative assistant
to the No. 2 compliance officer
at her firm.

The Biltmore’s pool, said to be
the largest in the continental United
States.

One of those representing Morningstar Inc. was Kartik Srinivasan, vice president of independent RIA advisor software. He says regulatory uncertainty is affecting all software providers, particularly when it comes to compliance with cost-basis regulations.

Kartik Srinivasan is a big fan
of RIABiz – he reads it
first thing in the morning with
his cup of coffee.

Srinivasan was captain of team “Mojito Madness,” made up of attendees from an array of firms: Rush Norton, assistant vice president Wealth Management Banking at Meriill Lynch, based in Miami; Tim Painter, president and chief investment officer at Lindus Advisors Inc. in Dallas; and Alan Strauss, investor relations, Crystal Capital Partners LLC, also in Miami.

Progressive sipping

Judges sample the mojitos.

After the 13 teams created their respective mojitos, the drinks were lined up on a banquet table and the judges, including Hamburger, worked their way down a table taking a sip or two from each glass. After some consultation, Hamburger announced the results with the caveat that his judgment might have been affected by the fact that as he went down the table, the drinks began to taste progressively better.

Victory! Team "Muddy Farmer" won the
day thanks to its nutrient-rich concoction:
Richard Woods; COO of Richard Woods
of Hamilton Point Investment Advisors; Ned
Van Riper, managing director of
Finetooth Consulting in Finetooth, Ohio; Ryan
Shanks, founder and CEO at Finetooth,
based in Longmeadow, Mass.; Helena Cohen,
investor relations at Crystal Capital Partners;
and David Selig, Founder and CEO
of Advice Dynamics Partners.

Alas, Mojito Madness came in second; the winner of the competition was “Muddy Farmer,” which attributed its success to its cucumber and bell pepper base, which made the cocktail nutritious as well as refreshing – a combination that would stand them all in good stead for today’s intense round of meetings, especially the often volatile and contentious Investment Advisor Town Hall.

Stay tuned.

Editor’s final note: I’m actiually not all that suprised about the fun factor. I attended the event last year. See: The MarketCounsel Member Summit hums in the Nevada desert.