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
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
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