The New Fiduciary Rule (16): Permissible Compensation under PTE 2020-02
The U.S. Department of Labor has released its package of proposed changes to the regulation defining fiduciary advice and to the exemptions for conflicts and compensation for investment recommendations to retirement plans, participants (including rollovers), and IRAs. Key Takeaways ERISA’s fiduciary and prohibited transaction rules require consideration of costs and compensation when fiduciary recommendations are […]
The New Fiduciary Rule (12): Advisors and Agents with Restricted Investment Menus (Part 1)
The U.S. Department of Labor has released its package of proposed changes to the regulation defining fiduciary advice and to the exemptions for conflicts and compensation for investment recommendations to retirement plans, participants (including rollovers), and IRAs. Key Takeaways The Department of Labor’s proposed fiduciary “package” expands the scope of fiduciary status (to include, e.g., […]
The New Fiduciary Rule (3): Fixed Indexed Annuities
The US Department of Labor has released its package of proposed changes to the regulation defining nondiscretionary fiduciary advice and to the exemptions for conflicts and compensation for investment recommendations to retirement plans, participants (including rollovers), and IRAs. Key Takeaways Statements from the White House indicate that the DOL and the White House are concerned […]
The New Fiduciary Rule (2): The Impact
The US Department of Labor has released its package of proposed changes to the regulation defining fiduciary advice and to the exemptions for conflicts and compensation for investment advice to plans, participants (including rollovers), and IRAs. Key Takeaways The Department of Labor’s proposed fiduciary “package” will have different impacts on different types of service providers […]
The New Fiduciary Rule (1): An Overview
The US Department of Labor has released its package of proposed changes to the regulation defining fiduciary advice and to the exemptions for conflicts and compensation for investment advice to plans, participants (including rollovers), and IRAs. Key Takeaways One time investment recommendations to qualified and ERISA retirement plans and their participants, and to IRA owners, […]
Discretionary Management of IRAs: Conflicts and Prohibited Transactions
Key Takeaways Where an investment adviser charges different fees for managing fixed income in a portfolio than for managing equities, and has discretion to determine the allocation between the two in an IRA, the investment adviser has control over its fees, which appears to violate a prohibited transaction provision in the Internal Revenue Code. The […]
Best Interest Standard of Care for Advisors #78: Compliance with PTE 2020-02: Mitigation of Incentive Effects of Payout Grids (Part 2)
The Department of Labor’s “Fiduciary Rule,” PTE 2020-02: The FAQs Key Takeaways The DOL has issued FAQs that generally explain PTE 2020-02 and the expanded definition of fiduciary advice. In FAQ 17, the DOL discusses both the implications of payout grids and mitigation techniques to minimize compliance risks. The general mitigation requirement is that financial […]