Things I Worry About (17): Executive Orders, Private Funds, and Fiduciary Standards (3)
Key Takeaways The Trump administration has issued an Executive Order about facilitating 401(k) investments in “alternative assets.” The Order directs the Secretary of Labor to examine current guidance and decide if it is appropriate for that purpose. The Order also directs the Secretary of Labor to issue guidance to clarify fiduciary responsibilities for 401(k) investing […]
The New Fiduciary Rule (50): What is a Best Interest Process?
Key Takeaways The DOL’s new regulation defining fiduciary advice to include one-time recommendations has been stayed, but advisers who make ongoing individualized recommendations to ERISA-governed retirement plans, participants in those plans, and IRA owners continue to be fiduciaries subject to fiduciary standards. Those standards—prudence and loyalty—can be called a best interest standard. However, the SEC’s […]
The New Fiduciary Rule (32): The DOL’s Final PTE 2020-02
Key Takeaways The DOL’s fiduciary regulation will be effective on September 23 of this year. As a result, beginning on September 23 one-time recommendations to retirement investors can be fiduciary advice and, where the advice is conflicted, the investment professional and financial institution will need the protection afforded by a PTE. While some of the […]
The SEC’s 2024 Examination Priorities: Impact on IRAs and Retirement Plans
Key Takeaways The SEC Division of Examinations is focused on advice to older investors and retirement investors. Advisors and their firms should review their practices for those investors. Among the concerns of the Division of Examinations is whether conflicts are adequately disclosed so that investors can provide informed consent. Off-the-shelf disclosures may not have sufficient […]
Investment Advisers: The Independent Duties of Care and Loyalty
Key Takeaways Recent SEC guidance has clarified that the investment adviser duties of care and loyalty are separate, independent duties. A reasonable interpretation of the SEC and Staff guidance is that the satisfaction of one will not satisfy the other–both must be individually satisfied. As a result, the SEC appears to be saying that, even […]