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Transfer Your Family Business To The Next Generation With A Written Succession Plan

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Richard Meier
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Transfer Your Family Business To The Next Generation With A Written Succession Plan

Small businesses are an economic powerhouse. According to the Small Business Administration, companies with fewer than 500 employees make up 99.9% of the businesses in the US—and they generate 44% of our total economic activity.1

An overwhelmingly large number of these small businesses are owned and operated by families. Some are pillars of their communities, started a century ago and passed down through three or even four generations. Others are newcomers to the local business scene, striving to carve out a sustainable and profitable business to pass down to their children when the time comes.

Although these small-business owners may intend to keep the business in the family, those intentions are not always formalized. In fact, the National Bureau of Economic Research’s Family Business Alliance reported in 2019 that only 15% of family-owned businesses have any sort of documented succession plan in place.

The need for succession planning

To be fair, a larger number of family-business owners likely have an informal verbal succession plan in place. However, a written plan not only spells out the first generation’s wishes for the company, but can also ensure the business can keep running after subsequent generations take the helm. Furthermore, a formalized succession plan also serves as a family peacekeeping tool.

For example, say Bob and Jill own a printing shop. As part of their estate planning process, the couple makes arrangements to leave the shop to their son, Ryan, who has been involved in the company for years. The couple also has two other grown children, both of whom have pursued careers outside the business. Bob and Jill make other arrangements to financially compensate those two children in other ways. By doing so, they ensure equitable distribution of their estate to their three children and spell out whom they want to run the business when they no longer can.

A documented succession plan also allows owners to direct what happens to nonfamily employees when the business changes hands. An owner may want to recognize longtime employees with financial distributions from the business, or even award them a percentage of ownership in the company. Without written documentation in place, these wishes could be challenged by heirs who would prefer to keep the business within the family.

Questions to address in your family business succession plan

For some family-owned businesses, transitioning ownership to the next generation will be simple and straightforward. For others, particularly those with some family members that are involved with the company and other family members that are not, the process will likely be more involved. A succession plan will include both corporate and estate planning documents. There may be new shareholder or operating agreements, or a number of trusts. But no matter its complexity, every family business succession plan should answer these questions:

Question 1: Who will take the reins?

First and foremost, a succession plan should lay out who will take ownership of the company and who will control operations, particularly if this involves two separate people or groups of people. This can be accomplished by dividing the ownership interests in the company into voting and nonvoting shares, which is especially useful when some family members are actively involved with the business and others are not. Those individuals actively involved with the business would hold the voting interests, and those not actively involved would hold nonvoting interests. This allows value to be shared with all members of the family.

Question 2: How—and when—will this transition take place?

For a planned transition, your business plan should address when the change in ownership/leadership takes place. The plan might also cover what role the first generation will continue to play in company operations (if any) and whether the transition will take place in phases or all at once.

Question 3: How will compensation work?

If the first generation remains involved in the company, the succession plan should cover how much compensation these employees will receive, how often they will be paid, and how long the income stream will continue.

Question 4: How will other family members be affected by the transition?

In some cases, the first generation may want to equalize their estate plan between those family members actively involved with the business and those family members that are not involved with the business. There are a number of options to consider when doing this, including structuring the company with voting and nonvoting interests, applying life insurance strategies, and balancing the estate with other assets outside of the business entity.

Question 5: What happens to current employees?

Do you wish to reward longtime employees for their performance and loyalty, or promote them to leadership within the company? Be sure to include details about your wishes in the succession plan or handle these decisions prior to implementing your succession plan.

Question 6: What is the contingency plan?

Sometimes, even the most well-thought-out succession plan will go awry. A contingency plan will cover what happens if younger generations must take control of the business sooner than expected.

Communication is critical

While a well-developed succession plan is important for the future of your family business, communicating the plan is critical to its success. We encourage our clients to regularly schedule family meetings to discuss the first generation’s financial picture and wishes. Families who own a business should also carve out time to discuss the company’s future. Doing so can help get everyone on the same page and ensure your business will continue serving your customers and community for generations to come.

At CIBC Private Wealth, we help families navigate the challenges of transferring a small business to the next generation. Visit our Privately Held Business page to learn more.

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MORE FROM FORBESCouncil Post: How Small Businesses Drive The American EconomyBy Martin Rowinski

https://www.forbes.com/sites/halseyschreier/2022/08/01/transfer-your-family-business-to-the-next-generation-with-a-written-succession-plan/

Accounting Excellence Awards host joins BBC’s Strictly Come Dancing

By
Richard Meier
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0
Accounting Excellence Awards host joins BBC’s Strictly Come Dancing

There was a reason Luca Pacioli, the father of accounting, devoted his life to double entry and not paso doble. For a long time, the accountancy profession and dance was as split as debit and credit. 

But at the Accounting Excellence Awards on 8 September, the accountancy profession will be swapping business attire for sequins and glitter as the Awards Night’s “fab-u-lous” host Ellie Taylor has been revealed as the latest celebrity to join Strictly Come Dancing. 

The Accounting Excellence Awards will be coming from London’s Tobacco Dock on 8 September, where some of the biggest names in the profession will vie to win the prestigious accountancy gongs. 

The finalists will be competing across hotly contested categories such as small, medium and large firm of the year, and will be hoping their firm name is called out so they can quickstep to the stage and collect their award – the Accounting Excellence version of the 10 paddle. 

While the award entrants didn’t specify the foxtrot or jive, the finalists did describe the delicate dance they had to perform over the past year to tackle the talent wars and the transition to the big virtual finance trend.

Ballroom blitz

Taylor, who is a regular on the BBC’s Mock The Week and Channel 4’s The Great Pottery Throw Down, said that she is “absolutely over the moon” about joining the Saturday night ballroom staple. “I’m focusing on the excitement and glitter and choosing to ignore the fact that I have the dancing ability of a newly born giraffe,” she said. 

The Strictly Come Dancing launch show will be recording on 7 September, the day before the Accounting Excellence Awards. The attendees, therefore, will be keen to see if Taylor shows off her new moves on the Tobacco Dock dance floor.

But Taylor’s “newly born giraffe” dancing technique will be facing fierce competition at the Award Night party after the accounting profession has recently shown a flair for busting out dance moves. 

Excel trainer Kat “Miss Excel” Norton, for example, has shown how the fusion of dance and office software has introduced the beloved spreadsheet to Gen-Z on the social platform TikTok. 

Accounting Excellence dance floor moves

But if like Pacioli you think boleo is a new accounting app, here are three dance moves you can attempt at the Accounting Excellence Awards. 

The HMRC hop: This is a dance move most accountants have already performed in their offices. You’ve been on the phone for over half an hour to HMRC, your foot has gone to sleep and you’re getting swept away by the hold music. To recreate this move, just jump from foot to foot (as you would to get the blood circulating in your feet again), while switching your hand holding the figurative phone receiver from ear to ear. You finish the sequence by bolting upright as if a colleague has walked into the room.  

Making it rain receipts: Who would have thought that a box of receipts would be a perfect inspiration for a dance move? You’ve all been there: it’s self assessment season and a big box of receipts has been dropped on your desk. For this dance move, encircle your dance troupe and imagine picking up a wad of receipts and mime throwing the receipts in the air and watching them flutter down like it’s the night before 31 January and you just don’t care. 

The expense capture jive: Inspired by the big fish, little fish, cardboard box style of dance moves, this one involves you miming scanning a box of receipts using your expense capture app of choice. To the music, mime picking up a receipt with one hand and with the other, pretending you’re holding a smartphone, just zap. 

Take a bow

Intuit QuickBooks is the headline sponsor for the Accounting Excellence Awards, while IRIS, Koinly, Mercia, Sage and Xero are category sponsors and Beanworks by Quadient is an ambassador. 

Taylor is in high demand after starring in Apple TV’s comedy series Ted Lasso. After the stand-up comedian has hosted the Accounting Excellence Awards, she will be launching two new formats – You Won’t Believe This (w/t) for Channel 4 and co-hosting Cheat on Netflix alongside Danny Dyer. 

https://www.accountingweb.co.uk/practice/general-practice/accounting-excellence-awards-host-joins-bbcs-strictly-come-dancing

Condo insurance: Is market stabilization fleeting?

By
Richard Meier
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0
Condo insurance: Is market stabilization fleeting?

Canada’s condo insurance market appears to have stabilized but the industry shouldn’t get lulled into the feeling that reforms are no longer needed, said Aaron Sutherland, the vice president of Insurance Bureau of Canada’s (IBC) Pacific region.

Over the past few years, the condo/strata market saw skyrocketing insurance premiums, with British Columbia and Alberta particularly hard-hit. In 2020, condo insurance premiums in B.C. rose on average 40% from the prior year, with anecdotal reports of much larger increases.

Also in B.C. in 2020, IBC introduced a number of measures aimed at addressing affordability of strata insurance. This included amending depreciation report requirements for strata corporations (which would enhance building maintenance requirements) and standardizing the definition of a strata unit.

For example, there was no standard definition of where a unit owner’s property begins and common property ends. “Simple things like this can prolong claims because of the ambiguity,” Sutherland said.

Early in 2020, IBC also reported it would engage a risk manager to assist condo corporations that are having trouble acquiring insurance, particularly in Alberta.

iStock.com/avid_creative

“We’ve had far fewer concerns coming into our risk management service, which was admittedly quite busy a few years ago,” Sutherland said in an interview Wednesday when asked about the state of the market and IBC’s recommendations. “More recently, strata insurance concerns are few and far between, which is a good thing for consumers.”

The B.C. financial services regulator has undertaken a survey of the industry, the results of which are expected soon, Sutherland reported. “[That] will shed more insights on the current state of the market,” he said. “But our expectation is that we do expect that they will also find that the market has stabilized.”

Still, while the B.C. government has introduced legislation that would let them address many of IBC’s recommendations, “we haven’t seen the enabling regulations that would bring these improvements into force,” Sutherland said.

“Yes, the market is stabilizing. But I wouldn’t get lulled into a false sense of security here that we don’t need these reforms to come. And this is the message we’re really taking to government.”

Moving forward on reforms will preserve market stability over the long-term, particularly in the face of inflation, labour market challenges and the continuing effects of a changing climate that will likely continue to put pressure on B.C.’s condo stock, Sutherland said.

“There’s a lot of pressures that remain in this space and on the industry generally, and that could put further pressure on the condo line in the years ahead,” Sutherland said. “Really, the best thing we can do is continue to focus on how we improve the risk management of our strata stock out here in the west and right across this country.”

Key to this is improving maintenance and repair of stratas, something at the heart of the concerns that the industry saw a couple of years ago, “because we still have a fair way to go,” Sutherland said.

“While things may be stable today, we need to do all we can to preserve that stability for our customers and for strata corporations,” he added. “And the best way we can do that is by giving them the tools they need to improve their own risk profiles moving forward.”

 

Feature image by iStock.com/laughingmango


https://www.canadianunderwriter.ca/insurance/condo-insurance-is-market-stabilization-fleeting-1004224382/

UK Jewellery brands – Digital Marketing Benchmark Report, Q3 2022 Published Today

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Richard Meier
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UK Jewellery brands – Digital Marketing Benchmark Report, Q3 2022 Published Today

The Q3 2022 benchmarking report for UK jewellery brands has just been published. Learn how the top 12 UK jewellery brands perform across the digital space.

Continue

3 Retirement Planning Tips for Small-Business Owners

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Richard Meier
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3 Retirement Planning Tips for Small-Business Owners

Rawpixel Ltd / Getty Images/iStockphoto

While the biggest investment small-business owners typically make for retirement is their business, it’s never too early to begin planning and investing for retirement outside of one’s business plan.

Here It Is: Our 2022 Small Business Spotlight
Find Out: 7 Things You Should Never Do When Planning for Retirement

GOBankingRates spoke with Nilay Gandhi, senior financial advisor with Vanguard Personal Advisor Services, to learn more about the three-step process that can make sense for small-business owners and allow them to experience a comfortable retirement.

See how small-business owners can plan for retirement.

1. Have a Budget

“The first step is to have a budget that includes saving for retirement plan contributions, especially if there is uneven cash flow,” Gandhi said.

A budget is the cornerstone of effective money management. A budget allows you to keep track of how much money you have coming in and the source of the income, how much is going out and exactly where it’s going.

Using a budget allows you to track fixed, variable and periodic expenses and better understand your spending habits. Once you have this understanding, you can set relevant financial goals, such as saving for retirement, and create a spending plan to be used once you retire.

Take Our Poll: Do You Think You Will Be Able To Retire at Age 65?

2. Discuss Your Options With a Financial Professional

There are several retirement plan options available to small-business owners. Some of these include contributing to an IRA, whether traditional or Roth, or a 401(k). As the business grows over time, business owners may consider a SEP or Simple IRA.

The best way to determine which plan is right for you, Gandhi said, is to consult a financial professional. Discussing options with a professional allows business owners to learn more about bigger plan offerings, such as defined benefit or defined contribution, which may be better suited to help maximize savings, reduce taxation and reward owners and employees.

3. Save as Much as You Can

Put as much savings as you can toward retirement each year.

“Even if it means in some years there are minimal contributions or you aren’t able to max out,” Gandhi said, “the power of time and compounding can’t be overstated.”

Don’t Wait

Many business owners want to focus on their business and its needs right now. They may perhaps think retirement planning can be left for tomorrow, but it’s important not to develop an “I’ll do it another day” mindset when it comes to retirement.

“The earlier you can plan for your retirement, the better,” Gandhi said. “It’s important to recognize the different strategies available — based on whether you are self-employed or not — and contribute savings early and often.”

More From GOBankingRates

This article originally appeared on GOBankingRates.com: 3 Retirement Planning Tips for Small-Business Owners

https://ca.sports.yahoo.com/news/3-retirement-planning-tips-small-180001976.html

UW Credit Union CEO talks cutting overdraft fees and equitable banking

By
Richard Meier
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0
UW Credit Union CEO talks cutting overdraft fees and equitable banking

UW Credit Union cut its overdraft and nonsufficient fund fees last year. Fees dropped from $30 per occurrence to $5, the Madison-based credit union announced.

When UW Credit Union decided last year it was going to cut its overdraft fees, it got the attention of others in banking and officials in Washington, D.C.

UW Credit Union CEO Paul Kundert was called before the House Financial Services Committee to talk about how that change has impacted the credit union.

UW Credit Union CEO Paul Kundert

UW Credit Union CEO Paul Kundert

“It provided us a chance to share our story and our thinking on overdrafts and how they affect consumers and what we experienced by reforming,” Kundert said. “This is something we feel passionately about.”

Kundert recalls one of the committee members asking him “how can you afford to do this?”

“We are able to acquire more checking accounts, we are able to retain more accounts,” Kundert said of the change in policy.

“We have 35 to 40% more checking accounts than the next largest credit union in Wisconsin. We have seen a business reward of people keeping our accounts with us longer and attracting more accounts because of our fair treatment.”

‘A lot of money at stake’

But Kundert understands why some institutions might be reluctant to make such a change.

“There’s a lot of money at stake for these financial institutions with fees, billions of dollars a year and it’s significant income,” Kundert said. “You can imagine institutions are reluctant to voluntarily make some changes to reduce their bottom line, or potentially, could.”

More: Summit Credit Union has agreed to buy West Bend-based Commerce State Bank, a move that continues expansion into Milwaukee area.

More: Wisconsin business startup aims to expose flaws in lending practices

Kundert talked with the Journal Sentinel about the impact of lowering the overdraft fees and other areas for change in banking.

Question: What has UW Credit Union seen when it comes to overdraft fees and the shift when it comes to changing that one banking policy?

Answer: We were an institution that led on this early on. Back in 2009, overdrafts created by debit cards really surged and the banking regulators were concerned about how much consumers were paying in debit card overdrafts, so they updated their regulations.

Basically, it said that consumers had to opt in to pay debit card overdrafts. So throughout the end of 2009 you saw a lot of financial institutions asking consumers to sign a form saying, ‘I agree to pay debit card overdrafts.’

That development really prompted us to really think deeply about this and say ‘That’s not good for consumers and we’re not going to do that.’ So we reformed our overdraft practices back in 2010. We saw a significant reduction in overdraft income and we felt good about ourselves, but then as we started thinking more and reading more about equity in 2020, it led us to look at our overdraft practices again and in July 2021 we cut our remaining overdraft fee from $30 to $5.

Other institutions did the same in the summer of 2021 and have, even in the last few months, continued to announce changes to their overdraft programs.

Q: If you’re charging someone extra for taking out money they don’t have, you know they’re in a bad financial situation, but knowing that banks have that revenue coming in as part of their bottom line, the conscious choice to reduce that level of revenue coming in is a difficult decision to make, from a business perspective.  

A: I think so. And you’re right, you have awareness that someone needs credit desperately to use this service. That is one thing that is somewhat unique to the banking business, the intimate knowledge you have about the consumer’s financial situation.

If you walked in to buy groceries, the grocery store doesn’t know how desperate you are for the food and you wouldn’t expect them to adjust prices based on that knowledge. But in the banking world, you have some insight into people’s needs.

And when people are desperate for credit, historically, we’ve seen they’re willing to pay prices that are unfair but necessary to support what their need is.

It isn’t an easy decision to choose a path where you’re, at least in the short-term, accepting lower revenue.

I do think, personally, there is a business case to reform overdrafts. I just don’t think any business is sustainable in the long term if they’re harming the well-being of their consumers. Excessive overdrafts are certainly harmful to the well-being of consumers. I don’t think there’s any dispute about that.

Q: What are some other policies that can be amended that would follow in the same spirit of the overdraft changes?

A: One that comes to mind that we’re committed to and have been, is in auto-lending. We’re one of the state’s top auto lenders, but we have a firm practice of offering the same interest rates whether you come into our office, or an auto dealer helps you with the loan, And other lenders will allow the auto dealer to increase the interest rate if they can negotiate that with a car buyer and then keep part of the income of the higher interest rate.

The Consumer Financial Protection Bureau did some analysis of that (practice) some time ago and said that tends to have a disparate impact because women and minorities end up paying more for credit empirically than other car buyers and borrowers. That’s another area where we said we’re not going to do that.

We have great auto-lending rates, but they shouldn’t be negotiated, they should just straight up be offered to people and we want to make sure everyone is getting the best rate that we can offer and not paying more simply because they weren’t as educated or didn’t understand that they didn’t have to accept that rate.

Q: Have you gotten any pushback from other financial institutions?

A: Not directly. I’ve heard indirectly from folks saying ‘What are they doing? Are they crazy? That’s a lot of money.’

But I have heard directly from a number of other credit union spokesmen that have said, “We’ve read some of the stuff you’ve written, it’s got us thinking and we’re going to make an adjustment too.”

I do think there will be some real changes coming, not just in Wisconsin but across the country, so I’m encouraged by that. There certainly are other institutions taking a wait-and-see (approach). Waiting to see if it seems to matter with consumers. Waiting to see if the regulators start pushing back more on their pricing and business approach.

Our subscribers make this reporting possible. Please consider supporting local journalism by subscribing to the Journal Sentinel at jsonline.com/deal.

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This article originally appeared on Milwaukee Journal Sentinel: UW Credit Union CEO talks cutting overdraft fees and equitable banking

https://news.yahoo.com/real-changes-coming-uw-credit-100134084.html

Sonoco Names Company’s First Chief Accounting Officer

By
Richard Meier
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0
Sonoco Names Company’s First Chief Accounting Officer

Sonoco Products Company

HARTSVLLE, S.C., Aug. 09, 2022 (GLOBE NEWSWIRE) — Sonoco Products Company (NYSE: SON), a diversified global packaging leader, is pleased to announce the promotion of Assistant Corporate Controller Aditya Gandhi to the newly created role of Chief Accounting Officer, effective immediately.   

Gandhi will report directly to Chief Financial Officer Rob Dillard and will oversee all accounting and SEC reporting functions for Sonoco. Gandhi will be an integral leader on the finance team, partnering with senior leaders across the company to drive change management, innovation and programs that improve efficiency and effectiveness across the entire organization.

“With almost two decades of experience and a demonstrated track record of success, Aditya will play a key role in partnering with global business leaders to drive greater business partnership and process improvements in the accounting and controllership organization with the goal of seamless integration of financial services as part of our strategy,” said Dillard. “We are pleased to have him in such a critical role for Sonoco as a strategic leader familiar with our company, processes and people.”

Prior to joining Sonoco, Gandhi held roles as a Segment Controller for Consumer Packaging and Senior Director of Technical Accounting at Westrock. Previously, he worked at GE Capital in the financial center of excellence providing accounting support to various businesses. Gandhi spent over 15 years in public accounting with Deloitte as a Senior Audit Manager supporting Fortune 50 global corporations as well as domestic and international assignments in the Deloitte U.S. National and London, United Kingdom offices. He holds a Bachelor of Commerce degree in Accounting, Finance and Economics from the University of Mumbai. He is also a Certified Public Accountant (CPA) and a Chartered Accountant with The Institute of Chartered Accountants of India.

About Sonoco
Founded in 1899, Sonoco (NYSE:SON) is a global provider of consumer, industrial, healthcare and protective packaging. With net sales of approximately $5.6 billion in 2021, the Company has approximately 22,000 employees working in more than 300 operations in 32 countries serving some of the world’s best-known brands in some 85 nations. Sonoco is committed to creating sustainable products, services and programs for our customers, employees and communities that support our corporate purpose of Better Packaging. Better Life. The Company ranked first in the Packaging sector on Fortune’s World’s Most Admired Companies for 2022 as well as being included in Barron’s 100 Most Sustainable Companies for the fourth-consecutive year. For more information on the Company, visit our website at www.sonoco.com.

Forward Looking Statements
Statements included herein that are not historical in nature are intended to be, and are hereby identified as, “forward-looking statements” for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. In addition, the Company and its representatives may from time to time make other oral or written statements that are also “forward-looking statements.” Words such as “anticipate,” “assume,” “believe,” “committed,” “consider,” “could,” “estimate,” “expect,” “forecast,” “future,” “goal,” “guidance,” “intend,” “may,” “might,” “objective,” “opportunity,” “outlook,” “plan,” “potential,” “project,” “strategy,” “target,” “will,” “would,” or the negative thereof, and similar expressions identify forward-looking statements. Forward-looking statements in this press release include but are not limited to statements regarding the Company’s future operating and financial performance and the Company’s strategy, including plans regarding change management, innovation and programs to improve efficiency and effectiveness, efforts to drive greater business partnership and process improvements and the integration of financial services. Such forward-looking statements are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management. Such information includes, without limitation, discussions as to guidance and other estimates, perceived opportunities, expectations, beliefs, plans, strategies, goals and objectives concerning our future financial and operating performance. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results may differ materially from those expressed or forecasted in such forward-looking statements. The risks, uncertainties and assumptions include, without limitation, those related to the Company’s ability to execute on its strategy, including with respect to partnerships, acquisitions, cost management, restructuring and capital expenditures, and achieve the benefits it expects therefrom; the Company’s ability to return cash to shareholders and create long-term value; and the other risks, uncertainties and assumptions discussed in the Company’s filings with the Securities and Exchange Commission, including its most recent reports on Forms 10-K and 10-Q, particularly under the heading “Risk Factors.” The Company undertakes no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed herein might not occur.

CONTACT: Contact: Lisa Weeks +843-383-7524 [email protected]

https://ca.news.yahoo.com/sonoco-names-company-first-chief-105000930.html

This Is One Type of Insurance You Never Want to Get

By
Richard Meier
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0
This Is One Type of Insurance You Never Want to Get

Image source: Getty Images

Having the right insurance is essential to provide important protection for assets. This includes auto insurance to protect against losses caused by car accidents as well as homeowners insurance to provide coverage in case of a disaster at home.

There’s one type of insurance no one should ever want, though. And it’s important to understand what it is and why some people might end up getting it even if they don’t intend to.

Steer clear of this type of insurance coverage

One key type of insurance that everyone should aim to avoid getting is called force-placed insurance. This is a kind of coverage that consumers don’t buy directly but rather that is bought for them. Here’s how it works.

When people take out certain types of loans such as home loans or car loans, they are required to have specific types of insurance coverage in place. Their lenders mandate this because the house or car acts as collateral and guarantees the loan. Lenders want their collateral to be protected in case of loss, so they mandate certain kinds of insurance to protect the property.

Sometimes, however, drivers or homeowners allow the required insurance coverage to lapse because they don’t pay premiums or they cancel a policy they are mandated to have. If that happens, lenders are typically able to buy force-placed insurance. And this is insurance no one should want.

What’s wrong with force-placed insurance?

There are two big issues with forced-placed insurance that make it so undesirable.

The first problem is that this kind of insurance usually costs much more than a standard policy would. Lenders don’t shop around to get the most affordable insurance. They buy from carriers that may have higher premium prices for force-placed coverage.

The second issue is that force-placed coverage is usually designed only to protect the property in order to make sure the lender doesn’t suffer losses it can’t recover by seizing and selling the collateral if needed. The policies are not meant to provide the type of broad asset protection people need.

For example, force-placed homeowners insurance coverage would typically cover the dwelling only. It would not usually provide liability protection for the homeowner. If someone was hurt on the property and the homeowner was sued, there would be no insurer to foot the bill for legal fees or to pay for any losses the owner was ordered to cover. It would also not cover the homeowner’s personal property, so if the property was damaged or destroyed, the homeowner would get no compensation and would have to replace everything with their own money.

Obviously, paying a lot of money for coverage that provides little protection is not something anyone should want. The good news is, it’s easy to avoid force-placed insurance by simply making certain that coverage requirements set by a lender are fulfilled. Anyone with a car or home loan should know what insurance protections they need to have in place and should shop around for affordable policies to comply with those requirements. After purchasing insurance, it should be maintained at all times without lapses.

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https://www.theglobeandmail.com/investing/markets/markets-news/Motley%20Fool/9437164/this-is-one-type-of-insurance-you-never-want-to-get/

Japan PM says new cabinet members must ‘review’ ties with Unification Church

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Richard Meier
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Japan PM says new cabinet members must ‘review’ ties with Unification Church

By Kiyoshi Takenaka and Elaine Lies

TOKYO (Reuters) -Japanese Prime Minister Fumio Kishida will reshuffle his cabinet on Wednesday paying attention to politicians’ ties with the Unification Church, seeking to distance his administration from the controversial group and reverse a slump in opinion polls.

The reshuffle comes as Kishida’s administration faces tumbling support rates. Public scrutiny of links between the group and ruling Liberal Democratic Party (LDP) lawmakers has increased markedly since former Prime Minister Shinzo Abe was gunned down last month at a campaign rally.

Abe was shot by a man whose mother is a member, and who told investigators he believed Abe had promoted the group to which his mother made ruinous donations, Japanese media have reported.

Kishida said on Tuesday that incoming new members of his cabinet and new ruling party officials must “thoroughly review” their ties with the group.

“It will be a pre-requisite,” Kishida said, speaking at a news conference in Nagasaki.

Support for Kishida’s cabinet has fallen to the lowest level since he took office last October, down to 46% from 59% three weeks ago, NHK public broadcaster said on Monday, results in line with other recent surveys. A vast majority of respondents said they want an explanation of politicians’ ties to the Unification Church.

Kishida said in Nagasaki his cabinet needs reshuffling to deal with problems such as rising prices and an increasingly tense security environment.

“In many ways, we are facing the most critical situation since the end of World War Two,” he said.

Industry Minister Koichi Hagiuda will be replaced by the former economy minister Yasutoshi Nishimura, Kyodo news reported later on Tuesday. Media reports said that Hagiuda will most likely replace the chairman of LDP’s policy research committee Sanae Takaichi, who will be appointed economic security minister.

Former defence minister Yasukazu Hamada will replace the incumbent Nobuo Kishi, Abe’s younger brother, while another former defence chief Taro Kono will enter the cabinet as the digital minister, Kyodo also reported.

Finance Minster Shunichi Suzuki will be retained, government and LDP sources told Reuters, declining to be named due to the sensitivity of the situation.

Foreign Minister Yoshimasa Hayashi and Economy Minister Daishiro Yamagiwa will also keep their posts, as will chief cabinet secretary Hirokazu Matsuno and LDP Secretary General Toshimitsu Motegi, media reports said.

One of Kishida’s advisers, Minoru Terada, and upper house lawmaker Naoki Okada, are expected to be appointed to the cabinet for the first time, the Yomiuri added, without specifying their positions.

The reshuffle had been expected to take place in early September, but analysts said Kishida appears to be moving early to try to halt the slide in his support as soon as possible. .

Though his ratings are also being hit by COVID-19 cases recently surging to record highs, the main issues voiced in opinion surveys are public unhappiness with the idea of a state funeral for Abe, Japan’s longest-serving premier but a polarising force in the country, along with the Unification Church connections.

“His cabinet lineup will show that the LDP is taking tough measures to deal with what is now mostly a problem of individuals before it taints the whole party,” said Airo Hino, a professor at Waseda University.

“The Unification Church problem is something he doesn’t want to drag on.”

(Additional reporting by Yoshifumi Takemoto, David Dolan and Kantaro Komiya; writing by Elaine Lies; Editing by Sam Holmes, Stephen Coates, Kenneth Maxwell and Raju Gopalakrishnan)

https://www.yahoo.com/now/japans-kishida-likely-retain-finance-222428699.html

If Event Marketing Is Now Digital Marketing, How Can Brands Nail Events In The Zoom Era?

By
Richard Meier
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If Event Marketing Is Now Digital Marketing, How Can Brands Nail Events In The Zoom Era?

Director, Enterprise Sales – RainFocus the event marketing platform that captures, analyzes & harnesses data for better events & conferences

Event marketing has changed substantially over the last two decades. It’s now a more important component of digital marketing than ever before and thoroughly embedded in the martech stack. Just look at the events of the previous two years: In a short time, the events industry pivoted from occasionally offering virtual and hybrid event options to providing those experiences as a mainstay.

Today, brands must provide opportunities that give customers the full event experience in digital form—while avoiding the potentially detrimental drawbacks of digital experiences such as Zoom fatigue. While they won’t be able to accomplish everything overnight, business leaders in the marketing space can prepare today. Key steps include removing silos from their teams, focusing on their user experience and—in some cases—taking inspiration from the latest social media platforms to inspire their next event.

Take a page from social media’s book: Creating snackable content can help drive engagement.

On TikTok, many videos are just 10 to 30 seconds long, include a brief description and usually incorporate storytelling elements such as music or audio to get a message across. Each user’s feed is constantly optimized to serve up content catering to their interests.

For B2B events with content serving as a critical step in the customer journey, it’s not realistic for a guest speaker to unravel the complexities of their expertise in mere seconds or to the tune of trending audio. But content that holds attendees’ attention can be critical for any successful event, be it in-person, hybrid or virtual. As event marketers, we can take note from social media platforms like TikTok and a reason for its success—short-form content, personalization and exceptional delivery.

As event marketers choose to spend on the frills of an in-person event or experiment with different online capabilities, they must also remember the core value proposition. B2B professionals attend events to learn and network. Even the flashiest event can fall flat if the content isn’t of the utmost quality. Rather, event marketers must meet attendees with stellar personalized content at the right time to create outstanding experiences that satisfy their desire to grow and learn as industry professionals.

We must end the event marketing silo and make better use of data.

For far too long, event marketers have dealt with event marketing tools separate from their marketing tech stack. This siloing has impacted how organizations can repurpose and collect customer data and use it elsewhere in events and other marketing channels. After all, event data is critical beyond the end of an event. It remains valuable year-round, enabling marketers to engage with customers and share relevant content and information tied to their previous experiences.

Event success requires the right marketing strategy. The more data you collect, the more it will strengthen your strategy by helping you understand potentially interested attendees, providing a targeted approach to teasing out the right content at just the right time.

Anyone can analyze event data, but to avoid falling behind, it’s crucial to integrate the data into the martech stack. By doing so, marketing leaders can gain a better understanding of each end user’s background and current needs, ultimately pairing information learned with behavioral data to make better recommendations before, during and after the event. By removing silos and using data better, leaders can also more carefully curate personalized experiences, avoiding event fatigue. As a disclosure, my own company RainFocus is a provider of such event marketing data solutions.

Forget the “in-person vs. virtual” debate and focus on user experience.

As people return to in-person events, some have begun questioning whether physical and virtual events can continue to coexist. Is an in-person event always better, or will attendees prefer the convenience of virtual? These questions are inherently flawed. Marketers must understand that it is not about the form in which the event takes place but about creating a memorable experience for the attendee by understanding what interests them and what they need. When the customer experience is your primary focus, it’s more likely that they will retain what they learn, leading to brand loyalty.

Marketers should also consider rebuilding their customer journey pipeline as a series of multiple event experiences and touchpoints, both physical and digital, creating a new channel comprised of sub-channels of event experiences. These sub-channels not only strengthen attendees’ relationships between events and the digital marketing channel but also integrate the customer through the sales and marketing funnel seamlessly.

As event marketers, we can now tie relevant digital content to unique customer journeys and deliver that content within unforgettable experiences to strengthen customer relationships and ensure long-term business impact.

Forbes Business Development Council is an invitation-only community for sales and biz dev executives. Do I qualify?

https://www.forbes.com/sites/forbesbusinessdevelopmentcouncil/2022/08/02/if-event-marketing-is-now-digital-marketing-how-can-brands-nail-events-in-the-zoom-era/

Peloton is slashing 800 more jobs, raising prices, and closing stores as part of the new CEO’s plan to turn around the business

By
Richard Meier
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0
Peloton is slashing 800 more jobs, raising prices, and closing stores as part of the new CEO’s plan to turn around the business

  • Peloton will cut roughly 800 employees on its customer-service and distribution teams.

  • It’s the third round of layoffs in 2022 for the embattled fitness company.

  • Peloton will also start closing its showrooms and will raise prices on its higher-end bike.

Peloton is cutting jobs once again as it takes measures to revive its business.

In a memo sent to employees on Friday, Peloton said it would cut 784 roles on its customer-service and distribution teams as it shutters its in-house logistics division. Going forward, the company will instead rely on third-party companies to deliver equipment and set it up in customers’ homes.

It’s the third round of layoffs for Peloton this year: 2,800 jobs were cut in February and about 570 employees in Taiwan were laid off last month. Bloomberg was the first to report the latest round of layoffs.

In addition to the layoffs, Peloton will begin closing many of its retail showrooms next year, Bloomberg reported. The company also announced Friday it will raise prices on some of its equipment. The price of the Peloton Tread will go up by $800, while the high-end Bike+ will get a $500 price bump in the US. The company will implement price increases in other parts of the world as well.

A Peloton spokesperson told Insider in an emailed statement that the company took steps “to further advance our transformation strategy, better positioning the company for long term success.”

“Any decision we make that impacts team members is not taken lightly, but these moves enable Peloton to become more efficient, cost effective, and agile as we continue to define and lead the global Connected Fitness category,” the spokesperson said.

The changes come roughly six months after Barry McCarthy took over as Peloton’s CEO amid a downward spiral for the company. Once a pandemic-era darling with a $50 billion market cap, Peloton was caught flat-footed when at-home fitness began to wane in popularity. Experts told Insider earlier this year that the company also mishandled its logistics operations, expanding quickly to meet demand before falling prey to the bull-whip effect.

McCarthy said in Friday’s memo to staff that “it was never more important that we be successful in managing our turnaround.”

“As we face economic uncertainty in the global macroeconomic outlook, we will continue to analyze our workforce and expenditures,” McCarthy wrote. “Change is constant, and we need to embrace it and make it one of our super powers.”

Do you have a Peloton-related story to share? Contact the reporter from a non-work email at [email protected]

Read the original article on Business Insider

https://news.yahoo.com/peloton-slashing-800-more-jobs-180154948.html

CIBC latest Big Six bank to partner with a FinTech on private open banking API

By
Richard Meier
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0
CIBC latest Big Six bank to partner with a FinTech on private open banking API

CIBC pens data access agreement with Utah-based MX.

The Canadian Imperial Bank of Commerce (CIBC) has entered a data access agreement with Utah-based FinTech company MX to provide its clients a seamless way to share financial information.

MX’s agreement with CIBC is the first of its kind for the bank and the first in Canada for MX.

By using MX’s application program interface technology (API), CIBC said its 11 million clients will no longer need to share their banking credentials to connect their banking information with third-party applications that partner with MX, such as personal financial management, budget tracking, and credit-building tools.

Founded in 2010 by Ryan Caldwell and Brandon Dewitt, MX combines open finance APIs with financial data to securely connect to and verify data for hundreds of use cases including account opening, money movement, and underwriting.

CIBC is the latest member of Canada’s Big Six banks to partner with a United States-based FinTech firm to launch what is essentially a private application of open banking.

In June, RBC partnered with Yodlee and Plaid to let its users share their financial data across Yodlee and Plaid’s combined third-party application network of over 7,500.

Working with another Utah-based company, TD teamed up with Finicity in 2020 to lay the groundwork for TD customers to request that TD transfers their financial data for services they want to use, including apps supported by Finicity.

Montréal-based API developer Flinks launched its open banking environment product with the National Bank of Canada last year, allowing FinTech startups to securely access consumer data from financial institutions without the need for screen-scraping.

The National Bank announced a commitment of $103 million CAD to Flinks in August last year, becoming a majority stakeholder of the company. The National Bank was the first financial institution to use Flinks’ open banking environment product.

RELATED: EQ Bank latest bank to join Flinks’ open banking environment

Last month, EQ Bank established an integration with Flinks’ open banking environment offering named Outbound. This arrangement is expected to provide EQ Bank with the framework to deliver open banking capabilities and launch new API data sharing methods.

While a handful of banks have entered into API partnerships since Canada has begun moving towards federally regulated open banking, the remaining members of the Big Six, Scotiabank and the Bank of Montréal, have yet to publicly announce such data access agreements.

PwC Canada digital banking director Abraham Tachjian was appointed as the country’s open banking lead in March, almost a year after the Advisory Committee on Open Banking released its final report.

No open banking API or framework currently exists in Canada. However, open banking stakeholders told BetaKit earlier this year that working groups were set to start in July.

RELATED: RBC pens private open banking partnerships with Plaid, Yodlee

CIBC partner MX plays in a space that is beyond open banking, calling itself an open finance company. Open finance, according to MX, is an extension of open banking. According to an MX blog post, open finance enables access and sharing of consumer data to more financial products and services beyond banking. This includes loans, consumer credit, investments, and pensions. It also enables wider integration of financial data with non-financial industries, such as healthcare and government.

Financial Data Exchange managing director Don Cardinal published an article through Forbes in May, describing open finance as what open banking “wants to be when it grows up.”

According to LinkedIn, MX’s workforce sits north of 900 people, with some, including its director of open finance Andrew Escobar, based in Canada. It works with financial institutions and FinTechs such as H&R Block, MetLife, Gemini, U.S. Bank, WaFd Bank, and BECU.

Escobar told BetaKit that MX’s agreement with CIBC is the first of its kind for the bank and the first in Canada for MX.

Featured image courtesy of CIBC.

CIBC latest Big Six bank to partner with a FinTech on private open banking API

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