This is my twenty-second article about interesting observations concerning the fiduciary rule and exemptions. While the application of the new fiduciary rule and prohibited transaction exemptions to broker dealers and investment advisers is fairly obvious — if not fully understood, there has been little in the way of discussion about
This is my twenty-first article covering interesting observations about the fiduciary rule and exemptions. While most of the requirements in the new fiduciary rule and exemptions are “old news” for retirement plan advisers, they may require significant changes for advisers to IRAs. For example, ERISA’s prudent man rule and the
As advisers who work with ERISA-governed retirement plans already know, an adviser’s compensation cannot be more than a reasonable amount. Because of the new fiduciary advice regulation, and the associated prohibited transaction exemptions (84-24 and the Best Interest Contract Exemption (BICE)), that requirement is being imposed on investment and insurance
Much attention has been given to the new fiduciary rules (applicable April 10, 2017) for recommending distributions from retirement plans and rollovers to IRAs. Where the adviser making the recommendation is a “Level Fee Fiduciary,” the new requirements are sometimes referred to as “BICE-lite,” because only certain of the requirements
This is my fifteenth article about interesting observations “hidden” in the fiduciary regulation and the exemptions. In my last post (Angles #14), I said that the prudent process requirement would apply to many, but not all, advisers. This article explains that statement. ERISA does not apply to individual IRAs (but
This is my eleventh article about interesting observations “hidden” in the fiduciary regulation and the exemptions. ERISA and the Internal Revenue Code limit compensation for services to plans and IRAs to “reasonable” amounts. Prohibited Transaction Exemption (PTE) 84-24 and the Best Interest Contact Exemption (BICE) also limit compensation to reasonable
This is my fifth article about interesting observations “hidden” in the preambles to the fiduciary regulation and the exemptions. The Best Interest Contract Exemption (BICE) has a special exemption for “level fee fiduciaries” who recommend to plan participants that they take distributions and rollover to an IRA advised by the
This is my third article about the interesting observations “hidden” in the preambles to the fiduciary regulation and the exemptions. Under the Best Interest Contract Exemption (BICE), the “financial institution” (e.g., a broker-dealer) cannot pay a fiduciary adviser (e.g., a financial adviser) incentive compensation that would encourage an adviser to
This is my second article about the interesting observations “hidden” in the preambles to the fiduciary regulation and the exemptions. The recommendation of investments and insurance products to plans, participants, and IRAs will be subject to the best interest standard of care. (The best interest standard is a combination of
Please join Brad Campbell and me during the April 28, 2016 presentation of “Inside the Beltway,” at noon eastern/9 am pacific time. Inside the Beltway is a quarterly audiocast in which we discuss developments in Washington that directly impact our industry. During this sixteenth presentation of Inside the Beltway we
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