>>>In comments made at the ASPPA annual conference last week, EBSA head Phyllis discussed what to expect when DOL re-proposes the rule amending the definition of fiduciary under ERISA. Borzi said, “What we’re trying to do in this regulation is focus on updated, modernizing and protecting people’s retirement security.” Borzi indicated that the re-proposal will include guidance on individual retirement accounts, revenue-sharing agreements, differentiating investor education from advice, and the "seller's exception."
A recent DrinkerBiddle article on a noticible uptick in DOL investigations of broker-dealers and RIAs suggests that the DOL is studying up on brokerage relationships in preparation for the rule. A Reuters article from last week quotes DrinkerBiddle attorney Fred Reish and Pension Resources Institute CEO Jason Roberts on how the DOL investigations relate to the fiduciary rule re-proposal and its enforcement.
>>>A press release by the DOL announced that they had coordinated with the SEC to clarify that disclosures required by DOL rule 404a-5 would also comply with the SEC's disclosure rule 482.
While on the subject of 404a-5, it is worth checking out the Fiduciary Advisor blog'ss breakdown of the participant fee disclosure rule and the practical consequences once it goes into effect.
Now on to the rest of the best links from the past week:
In the news:
- In this month's Fiduciary Corner column Blaine discusses new concerns for retirement plan providers [InvestmentNews]
- DOL's Borzi: retirement fiduciary re-proposal out early next year [AdvisorOne]
- DOL making a mistake in foregoing fiduciary standard [CBS:moneywatch.com]
- Speech by Carlo V. di Florio of the SEC: vigilant compliance must be grounded by ethics [InvestmentNews]
- DOL finalizes investment advice rule for retirement plans [AdvisorOne]
- DOL issues rule on personalized advice for 401(k)s, IRAs [Financial Advisor]
- DOL issues final rules on exemption for retirement advisors [Onwallstreet]
- DoL publishes final rule on ERISA transaction exemptions [PlanSponsor]
- DOL finalizes a rule that will deter advisers from receiving additonal fees from 401(k)s [InvestmentNews]
- FSI is raising fees to broker-dealer member firms to help expand its lobbying efforts in Washington [Financial Advisor]
- EBSA issued a final regulation regarding a new prohibited transaction exemption to improve access to unbiased advice [PlanSponsor]
- Alternative investments that go beyond stocks and bonds [New York Times]
- SEC Examinations Chief says a firm's "ethical culture" will go a long way into deciding just how rigorously the SEC will investigate the firm [Onwallstreet]
- Mercer Bullard discusses a rejected SEC rule that would have made it easier to replace HP's directors and also threatens the Commission's rulemaking authority [MorningstarAdvisors]
- SEC adopted a rule to require advisors to hedge funds to report for use by the FSOC in monitoring risks to the U.S. financial system [AdvisorOne]
- Fiduciaries have trouble benchmarking lifetime-income options [InvestmentNews]
From the blogs:
- The fourth deadly sin every ERISA fiduciary must avoid - overdiversification [FiduciaryNews]
- Notes on the practical realities of fee disclosure [Boston ERISA & Insurance Litigation Blog]
- A trip down memory lane - revisiting potfolio optimization [FiduciaryNews]
- Overdiversification and the 401k investor [FiduciaryNews]
- A look at two cases that show just how important paying attention to details are in eliminating financial risk [Boston ERISA & Insurance Litigation Blog]
- Trending topics for plan sponsors from last week [Fiduciary News]
From the organizations/associations/government/academia:
- Speech by Commissioner Walter before the SIFMA Compliance and Legal fall seminar [SEC]
- DOL and SEC coordinate on 401(k) plan fee disclosure rules [DOL EBSA]
- CFP certification holders gather in Washington, D.C. to discuss the future of the financial planning profession [CFP]
- DOL publishes final rule amending procedures for filing and processing prohibited transaction exemptions under ERISA [DOL EBSA]
- IAA's most recent newsletter discusses the Investment Adviser Oversight Act of 2011, the SEC examination program, and more [IAA]
Articles your clients are reading (or should be):
- 9 things financial advisers don't want you to know [The Fiscal Times]
- Why investors don't need multiple advisors, 401(k) investment strategies through the years, what's with all the fund changes? , and more from U.S. News [The Smarter Investor]
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
While these proposed rules can change who is considered a fiduciary...it doesn't change the "types" of fiduciaries out there. Here is the current fiduciary landscape in the financial industry (In a simple pie chart) http://www.wallstreetrant.com/2011/11/current-fiduciary-landscape-in.html
Posted by: WallStreetRant | November 12, 2011 at 07:51 PM