CFP Board’s Post

The new Fiduciary Rule has been introduced by the DOL. The following is a brief overview of the main points. We will keep you up to speed as more detail arises. https://lnkd.in/gnHjUJgg

Most plan sponsors believe the DOL and IRS need a reason to audit their plan but the fact is your plan could be the next target for no other reason than your number is up. One of the most common ERISA violations is failing to provide required documents to plan participants and missing or late Form 5500. Not surprisingly, these violations are easily avoided if you have an attentive plan advisor, but not just any advisor will do. The Bureau of Labor Statistics shows over 330,000 licensed financial advisors in the US and less than 2% of those advisors specialize in the retirement plan space. That's less than 6600 advisors nationwide who possess the experience and expertise to competently reduce your fiduciary risks. I often say if you don't know your plan advisor by name, you probably don't have their full attention. Don't trust your fiduciary duties to just any advisor, work with a Certified Plan Fiduciary Advisor (CPFA) and leave the worry to us. To schedule a free 30-minute consultation, click here: https://lnkd.in/e_mNGNbt Visit us online here: https://lnkd.in/eTRHfyrk #401kplan #fiduciary #planadvisor

Fiduciary Rule 26: In addition to the expanded definition of fiduciary advice, the DOL is proposing amendments to PTE 2020-02 for managing conflicts—particularly compensation conflicts. Here’s how the changes will affect advisors. https://bit.ly/43IAp3Z

The Fiduciary Rule Returns Again! The federal government has tried several times in the past years to extend fiduciary standards with little success. The proposed fiduciary standards will challenge the current business processes of many financial services companies! Rollovers are the largest single financial decision to enable retirement plan, I can understand why stricter fiduciary protections may be needed.  Having led the SEC Reg BI rule implementation a few years ago, I hope that any new rule is workable, clear, easy to understand and easy to implement. #fiduciary #bestinterest #compliance

Congress passed SECURE 2.0, a new set of retirement rules to make saving and accessing funds for retirement easier. Check out the major provisions of the law.

https://lnkd.in/ec2Bz5Et Sixty years ago the U. S. Supreme Court decided SEC v. Capital Gains Research Bureau and affirmed that investment advisers had fiduciary duties to their clients. The importance of avoiding or minimizing conflicts of interest as much as humanly possible was key to the decision. Conflicts were rightly deemed inherently harmful to investment advice. One SEC staffer subsequently called conflicts a "mortal threat" to advice. Today, the DOL Retirement Security proposal to update the definition of fiduciary advice reflects Capital Gains' core principles. This is why financial service industry lobbyists widely oppose the proposed DOL rule. This is more evidence that the proposed rule merits support and enactment.

As if keeping up with the SEC's regulatory agenda is not challenging enough - here we go again with the DOL fiduciary rule. Read our recent alert by my colleagues: Robert Sichel, Kristina Zanotti, Ruth Delaney, and Karishma Page.

A nice summary of the DOL Fiduciary rule.

Fiduciary Rule 20: The prohibited transaction exemptions PTEs 84-24 and 2020-02 both require that, if the conditions of the PTEs aren’t satisfied-e.g., a rollover isn’t in the best interest of an investor-the failure must be corrected & reported. How can failures be corrected and reported? Part of the answer is here and part in my next post. https://bit.ly/49jBW2I