Interesting Angles on the DOL's Fiduciary Rule
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DOL's Final Fiduciary Rule Interesting Angles on the DOL's Fiduciary Rule #1 Abstract: While you have probably read articles that summarize the DOL's final fiduciary rule and exemptions -- perhaps even articles that discuss specific aspects of the rules -- there are a number of interesting observations "hidden" in the preambles to the regulation and exemptions. Here is the first one. Source: Fredreish.com Podcast: Interview with Fred Reish Abstract: Blaine Aikin interviews ERISA attorney Fred Reish of the Drinker Biddle law firm on the DOL's fiduciary rule. Source: Fi360.com Assessing the Final DOL Fiduciary Rule Abstract: Although the final rule accommodated a few concerns expressed by commenters, according to this paper, many of the critical fixes to the Fiduciary Rule called for by the U.S. Chamber of Commerce remain unaddressed or were made worse in the final rule. Source: Uschamber.com Advisers Can't Respond Unilaterally to Final Fiduciary Rule Abstract: A given financial adviser's response to the final fiduciary rule from the Department of Labor may have more to do with the adviser's brokerage platform provider than their own decisionmaking about how to adjust. Source: Planadviser.com Business Practices Within the New Fiduciary Regulatory Structure Abstract: A recent survey of retirement plan service providers offers insight into how they are planning to modify their business practices to work within the new fiduciary regulatory structure. Source: 401khelpcenter.com
403(b) Plans A Choice for Tax-Exempt Employers: 403(b) or 401k Plan Abstract: Tax-exempt organizations can have either a 403(b) or 401k plan, or both, which leads some to consider whether they should have one over the other. Key differences between 403(b) and 401k plans are summarized in a convenient table of contrasts. Source: Aon.com How Does the DOL Fiduciary Rule Impact 403(b)s? Abstract: Michael A. Webb, Cammack Retirement Group, and David Levine, Groom Law Group, provide a "Cliffs notes" review on the new DOL fiduciary rule and how it affects 403(b) plan sponsors. Source: Plansponsor.com
Insight: Studies, Research and White Papers Judy Diamond Publishes First Annual 401k Benchmarking Report Abstract: Judy Diamond Associates announced that it has published the results of its first annual 401k Plan Benchmarking Report. This comprehensive look at the U.S. 401k market examines the performance of nearly half a million employer-sponsored retirement plans. Source: 401khelpcenter.com Gallup: Most U.S. Investors Happy With Their 401k Abstract: According to a recent Gallop survey, the vast majority of employed U.S. investors who participate in a 401k view it positively. Nine in 10 investors say they are satisfied with their own 401k plan as a tool for saving for their retirement, including 44% who are "very" satisfied and 47% who are "somewhat" satisfied. Just 9% are somewhat or very dissatisfied. Survey results are summarized. Source: Gallup.com 2016 Plansponsor Best in Class 401k Plans Abstract: Winners of the 2016 Best in Class 401k Plans designation were selected from more than 4,500 plans responding to PLANSPONSOR's 2015 Defined Contribution Survey. 401k plans were evaluated and scored on more than 30 criteria related to plan design, oversight/governance, and participant outcomes. For 2016, we are recognizing 26 Best in Class 401k plans from 8 different recordkeepers. Source: Plansponsor.com Abstract: In March, PLANSPONSOR surveyed 1,035 employed adults ages 23 and older regarding their access to and usage of defined contribution plans. Results can help plan sponsors ensure that their DC plan meets the expectations of the participants. Source: Plansponsor.com
Items of Special Interest to Service Providers What Plan Sponsors Want From Retirement Plan Advisers Abstract: Advisers can make themselves more valuable to employer clients by following these tips, according to a panel of plan sponsors at National Association of Plan Advisors' 15th annual 401k summit. Source: Investmentnews.com (registration may be required) DOL Fiduciary Rule Creates 'Prime Hunting Season' for 401k Specialists Abstract: Executives from broker-dealers and RIAs say the fallout would create opportunity for advisers specializing in 401k plans to steal business away from less-specialized "generalist" advisers. Source: Investmentnews.com (registration may be required) FINRA's Report on Robo-Advisors: Fiduciary Implications Abstract: FINRA recently issued a report on robo-advisors. The report suggests that, on a stand-alone basis, robo-advisors do not meet a fiduciary standard when they advise individual investors. The 14-page report supports the view that human judgment by a trained financial professional is a necessary element of the fiduciary standard. This paper analyzes the findings and implications of the FINRA report in light of the fiduciary standard of care. Source: Ssrn.com
Court and Other Legal Issues Federal Court Finds City National Engaged in Self-Dealing Abstract: In a sweeping decision, a federal judge in Los Angeles has found that City National Corporation violated employee retirement laws when it chose its own staff to administer its employee retirement plan in exchange for millions of dollars of unchecked, unreasonably high compensation. Source: Dol.gov
Compliance and Regulatory Participant's Elective Deferral Election Not Followed Abstract: One of the most common operational errors when administering retirement plans is the failure to implement a participant's elective deferral election or change in percentage. Article covers options to correct the error. Source: Belfint.com
Marketplace News Dalbar Introduces Reasonable Compensation Calculator Russell Combines Institutional and Intermediary DC Teams NAPA Welcomes Brandwein as President 2016 NAPA 401k Advisor Leadership Award Named Retirement Advisors of America Merges With Advisor Financial Services
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