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 (49): Recommendations to Transfer IRAs (NAIC)
Key Takeaways Two Texas Federal District Courts have “stayed” the effective dates of the DOL’s new fiduciary regulation and related exemptions, meaning that the private sector will not have to comply with those rules until the cases are resolved and if the guidance is vacated, those rules will never be effective. As a result, one-time […]
The New Fiduciary Rule (48): Recommendations to Transfer IRAs (DOL)
Key Takeaways Two Texas Federal District Courts have “stayed” the effective dates of the DOL’s new fiduciary regulation and related exemptions, meaning that the private sector will not have to comply with those rules until the cases are resolved and if the guidance is vacated, those rules will never be effective. As a result, one-time […]
The New Fiduciary Rule (47): Recommendations to Transfer IRAs (SEC)
Key Takeaways Two Texas Federal District Courts have “stayed” the effective dates of the DOL’s new fiduciary regulation and related exemptions, meaning that the private sector will not have to comply with those rules until the cases are resolved. As a result, one-time recommendations to plans, participants and IRAs will not be fiduciary advice for […]
The New Fiduciary Rule (35): The Education Exception
Key Takeaways The DOL’s final regulation defining non-discretionary fiduciary advice will be effective on September 23 of this year. If a conflicted fiduciary recommendation is made, the requirements (called “conditions”) of PTEs 2020-02 and 84-24 will need to be satisfied in order to retain any compensation resulting from the recommendation. However, absent a fiduciary recommendation, […]
The New Fiduciary Rule (34): The “Hire Me” Exception
Key Takeaways The DOL’s final regulation defining non-discretionary fiduciary advice will be effective on September 23 of this year. If a conflicted fiduciary recommendation is made, the requirements (called “conditions”) of PTEs 2020-02 and 84-24 will need to be satisfied in order to retain any compensation resulting from the recommendation. However, absent a fiduciary recommendation, […]
The New Fiduciary Rule (25): Robo Advice and Robo Conflicts
In November 2023, the U.S. Department of Labor 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 (including transfers). On March 8, 2024, the DOL sent the final rule to the Office of […]
The New Fiduciary Rule (24): The DOL Fiduciary Rule Requires a Recommendation. What is That?
In November 2023, the U.S. Department of Labor 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 (including transfers). On March 8, 2024, the DOL sent the final rule to the Office of […]
The New Fiduciary Rule (22): Can Wholesalers Become Fiduciaries
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 (including transfers). Key Takeaways It is, by now, well known that the expansive definition of fiduciary in the […]
The New Fiduciary Rule (17): Permissible Compensation under PTE 84-24
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 […]