Pequot Capital Management, Inc.Westport, CT, United States

Wealthy Clients Receive Concessions - In a measure to grant relief to high-net-worth customers whose investments have taken a hit, some financial services companies have lifted restrictions on accounts dipping below the required minimum. Both Charles Schwab and Vanguard have suspended deadlines for account holders to restore funds to levels needed to qualify for reduced fees or other preferential treatment, including discounted or free financial advice. By accommodating clients through flexible policies, firms can strengthen customer relationships that could result in client referrals and continued business over the long term.

Private Equity Suffers Losses - Private equity firms reported declines in asset value ranging from 15 to 50 percent for fourth quarter 2008, which will hurt the financial performance of organizations that invested in private equity. Foundations and endowments, key clients of financial planners, put large sums of money into private equity investments over the past decade for sizable returns, according to the Wall Street Journal. Additional write-downs on many private equity investments are likely.

Increased Oversight of Financial Advice Firms - The US Securities and Exchange Commission (SEC) may require that investment advisory firms use third parties to maintain client assets. The third party, or "independent custodian," would replace the current requirement of a "qualified custodian," according the National Association of Personal Financial Advisors, an industry group. Implementing the requirement could improve investor confidence in investment advisors, which has fallen in the wake of the highly publicized Bernard Madoff fraud scandal.