Things I Worry About (14): ESG and the Political Back-and-Forth at the DOL
Key Takeaways The Trump administration is dropping its defense of the Biden-era ESG regulation on prudence for investment selection for fiduciaries of ERISA-governed retirement plans. In turn, the Biden era regulation reversed a regulation from the first Trump administration that was, in parts, anti-ESG. The Trump administration is expected to reinstate a regulation similar to […]
The New Fiduciary Rule (10): What is An Investment? (Part 2)
The U.S. Department of Labor has released its package of proposed changes to the regulation defining nondiscretionary fiduciary advice and to the exemptions for conflicts and compensation for investment recommendations to retirement plans, participants (including rollovers), and IRAs. The proposed regulation redefines fiduciary status for “investment” recommendations. But what is an investment recommendation? The answer: […]
The New Fiduciary Rule (9): What is An Investment? (Part 1)
The US Department of Labor has released its package of proposed changes to the regulation defining nondiscretionary fiduciary advice and to the exemptions for conflicts and compensation for investment recommendations to retirement plans, participants (including rollovers), and IRAs. The proposed regulation redefines fiduciary status for “investment” recommendations. But what is an investment recommendation? The answer: […]
The New Fiduciary Rule (8): Special Issues—Robo Advice and Investment Education
The U.S. Department of Labor has released its package of proposed changes to the regulation defining fiduciary advice and to the exemptions for conflicts and compensation for investment advice to plans, participants (including rollovers), and IRAs (including transfers). Key Takeaways The Department of Labor’s proposed regulation defining fiduciary investment and insurance advice to private sector […]
The New Fiduciary Rule (7): Non-Discretionary Investment Advice
The U.S. Department of Labor has released its package of proposed changes to the regulation defining fiduciary advice and to the exemptions for conflicts and compensation for investment advice to plans, participants (including rollovers), and IRAs (including transfers). Key Takeaways The Department of Labor’s proposed regulation defining fiduciary investment and insurance advice to private sector […]
The New Fiduciary Rule (6): The Fiduciary Definition of Fiduciary
The US Department of Labor has released its package of proposed changes to the regulation defining fiduciary advice and to the exemptions for conflicts and compensation for investment advice to plans, participants (including rollovers), and IRAs (including transfers of IRAs). Key Takeaways The Department of Labor’s proposed regulation defining fiduciary investment and insurance/annuity advice to […]
The New Fiduciary Rule (5): Discretionary Investment Management
The US Department of Labor has released its package of proposed changes to the regulation defining nondiscretionary fiduciary advice and to the exemptions for conflicts and compensation for investment recommendations to retirement plans, participants (including rollovers), and IRAs. Key Takeaways The Department of Labor’s proposed regulation defining fiduciary investment and insurance advice to private sector […]
Discretionary Management of IRAs: Conflicts and Prohibited Transactions
Key Takeaways Where an investment adviser charges different fees for managing fixed income in a portfolio than for managing equities, and has discretion to determine the allocation between the two in an IRA, the investment adviser has control over its fees, which appears to violate a prohibited transaction provision in the Internal Revenue Code. The […]
Best Interest Standard of Care for Advisors #85: Compliance with PTE 2020-02: Special Issues: Monitoring (2)
Key Takeaways The DOL has issued FAQs that generally explain PTE 2020-02 and the expanded definition of fiduciary advice. The DOL’s expanded definition of fiduciary advice was described in the preamble to PTE 2020-02. The PTE then provides conditional relief for conflicted non-discretionary recommendations, if its conditions are satisfied. My last article, Best Interest #84, […]
Best Interest Standard of Care for Advisors #10
Regulation Best Interest: The Focus on Costs (Part 2) The SEC has issued its final Regulation Best Interest (Reg BI), Form CRS Regulation, RIA Interpretation and Solely Incidental Interpretation. I am discussing the SEC’s guidance in a series of articles entitled “Best Interest Standard of Care for Advisors.” ______________________________________________________________________ The SEC’s Reg BI establishes a […]