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
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 tenth article about interesting observations “hidden” in the fiduciary regulation and the exemptions. When the new fiduciary advice regulation is applicable on April 10, 2017, a recommendation to a participant to take a distribution and rollover to an IRA will be a fiduciary act. It doesn’t matter
This is my ninth article about interesting observations “hidden” in the fiduciary regulation and the exemptions. As I explained in an earlier post, there are three parts to the best interest standard . . . Prudence: “. . . the fiduciary acts with the care, skill, prudence, and diligence under
This is my eighth article about interesting observations “hidden” in the fiduciary regulation and the exemptions. The final regulation on fiduciary advice continues, as education, the current practice of providing participants with asset allocation models that are populated with a plan’s designated investment alternatives (DIAs). However, the rule imposes a
This is my seventh article about interesting observations “hidden” in the fiduciary regulation and the exemptions. There are three parts to the best interest standard . . . The prudent person rule. Individualization to the retirement investor’s circumstances. The duty of loyalty. See the three parts below. Interestingly, none of
This is my sixth article about interesting observations “hidden” in the preambles to the fiduciary regulation and the exemptions. In some cases, the concerns about the scope of the fiduciary rule are overblown. For example, there have been some statements that advice about minimum required distributions for IRAs would be
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