Seven Reasons Why the DOL Rule Is Flawed
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In This Issue The papers, articles, and materials published this past week continue to be predominately about the DOL's final fiduciary rule.
DOL's Final Fiduciary Rule Seven Reasons Why the DOL Rule Is Flawed Abstract: The only thing that is now more contentious than the back and forth leading up to the DOL passing of its new fiduciary rule is whether or not we should celebrate the moment as a milestone for fiduciaries or take a moment to relegate Labor Secretary Thomas Perez to the same place in the appeasement hall of fame as Neville Chamberlain. Don Trone shares his views. Source: Riabiz.com Tweaks to DOL Fiduciary Rule Ease Implementation Without Sacrificing Core Principles Abstract: The basic framework of the 2015 proposal remains intact even though the DOL made some important concessions to improve the rule's workability for securities-licensed personnel who will have to adapt to becoming fiduciaries for the first time. Author suggests that the DOL made these changes to address practical impediments to implementing the rule, without sacrificing core fiduciary principles. Source: Fi360.com Advisor's Guide to DOL Fiduciary and the New Best Interests Contract Requirement Abstract: This lengthy article provides an in-depth look at the keystone of the new fiduciary rule as it pertains to advisors working with individual retirement accounts: the new "Best Interests Contract Exemption," which most broker-dealers and insurance companies will rely upon in their future attempts to provide conflicted advice to IRAs for commission compensation, and the creation of the new "Level Fee Fiduciary" safe harbor. Source: Kitces.com DOL Issues Final Fiduciary Rule: A Comprehensive Overview Abstract: The DOL issued a final rule defining the term fiduciary for investment advisers and brokers providing advice to participants and beneficiaries of employee benefit plans governed by ERISA and individual retirement accounts. The final rule makes several modifications and clarifications to the proposed rule. In conjunction, the DOL also issued amended versions of prohibited transaction exemptions. Source: Practicallaw.com Groom Law Group's Resources on the New Fiduciary Rule Abstract: The new rule will have a profound impact on the retirement system and how services are provided throughout the industry. Here are eight resources being made available by Groom. Source: Groom.com How Will the DOL Enforce Its Fiduciary Rule? Abstract: The enforcement impact will be most pronounced in the retail market, experts said, because individual retirement account owners will essentially become the army through which the Department of Labor wields indirect enforcement influence. Source: Investmentnews.com
Fiduciary and Plan Governance Material Managing Missing Participant Accounts and Fiduciary Responsibility Abstract: Managing missing participant funds has been somewhat of a gray area within the retirement plan industry. But now, the DOL has decided to increase its scrutiny of benefit payment practices -- including the way plan sponsors and trustees search for missing participants and manage their accounts -- to ensure that retirement plan trustees fulfill their fiduciary responsibilities to plan participants. This 4-page paper offers an overview and practical tips. Source: Penchecks.com 401k Administrative Fees: Impact of an ERISA Expense Account Abstract: An ERISA expense account is a plan level account established to hold excess revenue that can be used to pay eligible plan expenses. When properly used, they can reduce plan expenses. This article reviews the use of ERISA expense accounts. Source: 5500audit.com
Items of Special Interest to Service Providers Abstract: Fred Reish and Joan Neri Answer the question, "Am I subject to liability if I learn that a one of these committees is about to commit a fiduciary breach or engage in a transaction prohibited by ERISA?" Source: Planadviser.com Abstract: ERISA requires that an adviser act as a "prudent expert" when making a recommendation, while FINRA requires that the adviser "have a reasonable basis to believe" that a recommendation is "suitable." The purpose of this article is to give advisers a high-level overview of these standards of conduct and to highlight some differences and similarities. Source: Planadviser.com
Compliance and Regulatory Revised Annual Filing Procedure for Puerto Rico Benefits Trusts Abstract: The Puerto Rico Treasury Department recently issued Administrative Determination No. 16-05, which provides a revised procedure for trusts forming part of Puerto Rico qualified requirement plans (Benefits Trusts) to meet their annual filing requirements. Source: Haynesboone.com IRS Withdraws Proposed Rules Affecting New Comparability Allocations Abstract: The IRS has announced that it is withdrawing certain provisions of Proposed Treasury Regulation REG-125761-14 that would have had drastic effects on retirement plans that have certain new comparability allocation formulas and individual allocation groups. Source: Ascensus.com Recent IRS Changes Impact Retirement Plan Compliance Abstract: 2016 is a significant year as the IRS's budget continues to be under very significant pressure and the employee plans world faces important changes that dramatically impact the relationship between the IRS and employee plans stakeholders. This article highlights the latest IRS guidance and its potentially significant impacts. Source: Groom.com DOL Files ERISA Complaint Against Interactive Marketing Group Abstract: A trustee to a profit sharing plan offered by a New Jersey-based marketing firm is accused of abandoning his responsibilities to the plan and its participants. Source: Planadviser.com
Marketplace News Millennium Trust Introduces Search Tool for Unclaimed Retirement Funds Lincoln Financial Hires Director of Consultant Relations Former Schwab Executive Joins Betterment's Board Empower Appoints EVP for Operations
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