FINANCIAL ADVISOR INSIGHTS: A new bill in New York could give whistleblowers a big cut of recovered money

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FA Insights is a daily newsletter from Business Insider that delivers top news and commentary for financial advisors.

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New York's attorney general considers whistleblower incentive bill (Think Advisor)

New York Attorney General Eric Schneiderman will propose legislation that seeks to protect whistleblowers in the financial services industry. Think Advisor notes, "Schneiderman's bill, the Financial Frauds Whistleblower Act, would provide financial compensation to whistleblowers who voluntarily report fraud in their industry and whose tips lead to more than $1 million in penalties or settlement proceeds." Whistleblowers would be incentivized by receiving between 10% and 30% of the recovered money.

Athletes, movie stars, and Wall Streeters are teaming up to minimize venture capital investment risks (Market Wired)

MLB all-star Torii Hunter and veteran Wall Streeter Ed Butowsky are teaming up with a group of their peers to reduce the risk of venture capital investments. Anyone can join the investment team, which will include research analysts, venture capital experts, and private equity professionals. Market Wired notes, "There is no fee to join the Club, and members have no obligation to invest; however, if and when an investment is made into a start-up company, a new limited partnership will be formed. Each individual investor into that limited partnership will own a percentage in proportion to their investment." They continued, "Athletes and celebrities who choose to invest will be encouraged to promote these ventures on Facebook, Twitter, Instagram and other social media networks to give them maximum exposure."

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Fund that hasn't bought a new stock in 80 years is outperforming 98% of its peers (Reuters)

The Voya Corporate Leaders Trust Fund hasn't added a new stock to its portfolio in 80 years, but is still outperforming 98% of its peers over both 5 and 10 year periods, according to Morningstar. The fund's outperformance is in large part due to its weighing in railways and energy while shying away from the financials. However, "Performance has fallen lately as low oil prices hurt ExxonMobil and Chevron. Its returns over the past year were about 12 percent, compared with more than 16 percent for the S&P 500," reports Reuters.

Setting up a trust to plan for divorce (Wealth Management)

Approximately 50% of US marriages end in divorce, meaning it is important to draft a trust that keeps everyone's interests in mind. There is some debate as to whether a trust should remove a spouse upon the filing of divorce or upon divorce. Kim Kamin of Gresham Partners, LLC. suggests, "(1) plan for divorce with flexibility and precision to maximize a divorcing couple's options, while (2) protecting what most divorcing settlers would want, and (3) recognizing that often the attorney represents and has duties to both spouses at the drafting stage."

6 things everyone should know about long-term care (Financial Planning)

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Long-term care needs are growing along with the aging US population. According to data from the American Association for Long Term Care, "U.S. long-term care coverage hit $7.85 billion last year, an increase of 5% over the prior year." Financial Planning highlights these 6 things to understand about long-term care: "Payouts are likely to rise; people will live longer than they think -- and will need help; clients may need less care than they think; partial coverage might be enough; advisors may be falling short" in providing their clients with long-term care needs.

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