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
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 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 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
This is my fourth article about interesting observations “hidden” in the preambles to the fiduciary regulation and the exemptions. During a recent webinar for TD Ameritrade, one of the attendees asked if Jim Cramer’s TV stock tips would be considered fiduciary advice. I said that they would not be, since
Thanks for subscribing to Fred Reish’s industry updates.
New articles and insights will be delivered directly to your inbox.