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 I discussed in an earlier post (Angles #7), the Best Interest Standard of Care has three parts: The prudent man rule; a requirement for individualization; and a duty of loyalty. Notice that none of the three parts requires that the “best” investment be recommended Because of concerns that the
This is my nineteenth article about interesting observations about the fiduciary regulation and the exemptions. In an earlier post (Angles #16), I described how advisers could use the “hire me” approach to explain their services and fees without becoming a fiduciary for that purpose. Generally stated, under that approach, an
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 sixteenth article about interesting observations “hidden” in the fiduciary regulation and the exemptions. Beginning April 10, 2017, the recommendation of almost any investment or insurance product to a plan, a participant or an IRA owner will be a fiduciary act. (While individualized recommendations are already fiduciary acts,
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 fourteenth article about interesting observations “hidden” in the fiduciary regulation and the exemptions. When the new fiduciary regulation applies on April 10, 2017, anyone who makes investment recommendations or investment “suggestions” to retirement plans will be a fiduciary adviser. As a result, the adviser must engage in
This is my thirteenth article about interesting observations “hidden” in the fiduciary regulation and the exemptions. It is not clear under current rules whether “suggesting” investment policies is a fiduciary act. In that vein, it’s also not clear if providing a sample investment policy statement (IPS) is a fiduciary act.
This is my twelfth article about interesting observations “hidden” in the fiduciary regulation and the exemptions. The DOL has long taken the position that the recommendation of a discretionary investment manager is a fiduciary act. (At least one court has adopted that position – in a case involving investments with
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