Fiduciary Links: Hat switching rule limits the potential of House reform bill

In her regulatory update last week, Kristina looked at the amendment to the House reform bill that would permit advisors to take off their "fiduciary hat" after completing the provision of investment advice. This is just the latest development in the battle over the fiduciary standard in regulatory reform, with the Financial Planning Coalition quickly responding with their displeasure.

As opined in a Market Watch column, the danger is that the provision basically negates the benefits of extending the fiduciary standard to all investment advice if the advisor doesn't have to live up to it at the point of transaction or in an ongoing capacity. If one of the goals of reform is to help clear up investor confusion over who is or is not a fiduciary, then the provision surely provides a set back.

Now on to the rest of the links, beginning with our Tweet of the week, which also was on the subject of the hat-switching provision:

@BeManaged: 'Hat-Changing' Fiduciary Proposal May Confuse Investors - WSJ - There is no "may" about it. It will. http://ow.ly/MTEe  #401k #fiduciary

In the news/commentary:

• IN calls House reform bill an early Christmas present despite the lump of coal
• A local paper story says to contact your representative to voice support of fiduciary standard
• Cincy and Indy papers help explain the differences in standards
• Reform progress was made in '09, uncertainty looms for '10 with Senate elections
• Mercer Bullard, AIF, named to the InvestmentNews top 20 influencers list
• A look at the efforts to improve the 401(k)
• Some thoughts on dealing with 12(b)-1 fees
• The unintended consequence of auto enrollment may be lower company matches
  

From the organizations/associations/government/academia:

• Retirement Research Council releases 403(b) compliance white paper
• In order for target-date funds to be QDIA eligible, new bill would require managers to take on fiduciary responsibility
• Junk bonds in target date funds make them riskier than investors believe
• Reish looks to ERISA to wade through the brokers as fiduciary issue
• SEC approves surprise audit rules
  

From the blogs:

• The Float recounts a first hand experience of dealing with an independent fiduciary
• What the SEC gains from the House reform bill
• A look at the multiple layers of fees that can add up in a 401(k) rollover
• Slow and steady wins the investment race
  

Have a link we missed? Leave them in the comments section or email us at blog@fi360.com. For more of the best links during the week, make sure you follow us on Twitter.