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 (15): Reasonable Costs and Reasonable Compensation
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 (10): What is An Investment? (Part 2)
The U.S. 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. The proposed regulation redefines fiduciary status for “investment” recommendations. But what is an investment recommendation? The answer: […]
The New Fiduciary Rule (9): What is An Investment? (Part 1)
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. The proposed regulation redefines fiduciary status for “investment” recommendations. But what is an investment recommendation? The answer: […]
The New Fiduciary Rule (8): Special Issues—Robo Advice and Investment Education
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 advice to plans, participants (including rollovers), and IRAs (including transfers). Key Takeaways The Department of Labor’s proposed regulation defining fiduciary investment and insurance advice to private sector […]
The DOL’s Regulatory Agenda and a New Fiduciary Rule
UPDATE: On August 8, I posted this blog article in contemplation of the DOL sending a new fiduciary proposal package to the Office of Management & Budget (OMB) in the White House. One month later, to the day, the receipt of the DOL’s proposed fiduciary rule and prohibited transactions was posted on the OMB’s website. […]
Rollovers, Regulation, Litigation: Where Are We and What’s Next?
Key Takeaways The recent decisions on the DOL’s interpretation of fiduciary status are significant but limited in scope. Fiduciary status for plan-to-IRA rollover recommendations, standing alone, has been vacated. But other important transactions, such as IRA transfers, have not. Also, where an advisor is a fiduciary to a plan or participant, and then recommends a […]
The DOL’s Fiduciary Interpretation and the Florida Court Decision
In 2020, the Department of Labor (DOL) issued its Prohibited Transaction Exemption (PTE) 2020-02 to provide an exemption to most prohibited transactions resulting from nondiscretionary fiduciary advice to retirement plans governed by either ERISA or the Internal Revenue Code, or both, as well as nondiscretionary fiduciary advice to IRAs. The DOL’s Fiduciary Interpretation and Prohibited […]
Best Interest Standard of Care for Advisors #18
Regulation Best Interest: Rollover Recommendations for Investment Advisers (Rollovers Part 4) The SEC has issued its final Regulation Best Interest (Reg BI), Form CRS Rule, RIA Interpretation and Solely Incidental Interpretation. I am discussing the SEC’s guidance in a series of articles entitled “Best Interest Standard of Care for Advisors.” In earlier posts (e.g., Best […]