Cogent Report: Fees Most Common Reason for Switching Recordkeepers
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Insight: Studies, Research and White Papers Cogent Report: Fees Most Common Reason for Switching Recordkeepers Abstract: Report found that plan administration fees are the most common reason for switching recordkeepers, and likewise are an important driver of satisfaction and loyalty when client expectations are fulfilled. Importantly, the aspect of providing good value for the money is the leading enhancer to brand consideration this year, reinforcing the point that plan sponsors are seeking value from a provider. Source: 401khelpcenter.com DB Principles for the DC Generation Abstract: With retirement planning becoming a greater concern for baby boomers, generation X and even millennials, awareness of their particular concerns and what to do about them is an important consideration for plan sponsors. This paper explores the topic in-depth. Source: Bnymellon.com Advancing Financial Literacy, Capability and Well-Being Among Hispanics Abstract: Financial literacy and capability are keys to closing the wealth gap that exists among Hispanics, but are often lacking in the Hispanic community. The objective of this report is to inform policies, practices and services that target improvements in financial literacy and capability among Hispanic households. Source: Tiaainstitute.org Case Study: Communication Key to Strong Participation Abstract: Communication and a willingness to consider diverse groups have been key as Goodyear Canada has embarked on changes to its retirement offerings. New employees have the opportunity to join the defined contribution plan when they first join the company. The group registered retirement savings plan is voluntary, but 75 per cent of staff are currently enrolled in it. Source: Benefitscanada.com Mobile Enhancements Sweep the Retirement Sphere Abstract: While the growing reliance on mobile devices in the financial space is due in part to millennials entering the workforce, this trend crosses generational gaps; a recent study by Edison Research found that more than half of consumers age 55 and up now own smart phones. Retirement firms have responded to this trend and many firms have unveiled enhancements to their mobile platforms. Source: Corporateinsight.com
403(b) Plans Helping 403(b) Clients Understand Universal Availability Rules Abstract: Failure to comply with universal availability (UA) rules is still one of the most common errors the Internal Revenue Service (IRS) finds in examinations of 403(b) retirement plans. Source: Planadviser.com
Items of Special Interest to Service Providers 401k Aggregation: An Advisor's David to the Industry's Goliath Abstract: Aggregation is growing in the retirement space, and with good reason. The economics and scalability it affords enables firms to compete in a shrinking margin environment. Beyond the numbers, aggregation offers advisors many benefits including expanded bandwidth to create more innovative programs, a greater voice with investment companies, better use of non-traditional programs like financial wellness, and preferred pricing for a variety of programs and services. Source: 401kspecialistmag.com Should Advisors Ditch Their Broker-Dealers in Light of DOL Fiduciary? Abstract: It is imperative that advisors at broker-dealers begin to consider what kind of business they want to operate in the future, and whether it's really necessary to continue offering commission-based products and deal with the additional compliance burdens, or choose to focus as a level-fee fiduciary instead. Source: Kitces.com SEC Plans to Propose Fiduciary Rule Next April Abstract: The Securities and Exchange Commission plans to propose rules for raising invest. advice standards and authorizing non-governmental examinations of advisers next spring (April 2017), according to its latest regulatory agenda. Source: Investmentnews.com (registration may be required)
Court and Other Legal Issues BB&T Faces Lawsuit Over Performance of Its 401k Plan Abstract: BB&T Corp. and managers of its 401k plan are being sued by participants who allege they are being charged excessive fees for often under performing proprietary mutual funds. The lawsuit was filed by 12 named plaintiffs -- current and former employees -- in the U.S. District Court for the Middle District of N.C. on behalf of the BB&T Corp. 401k Savings Plan. Source: Journalnow.com Participants File Self-Dealing ERISA Suit Targeting M&T Bank Abstract: Participants in M&T Bank retirement plans accuse the company of unfairly promoting its own mutual funds at the expense of plan performance, an increasingly common charge being leveled against providers in the 401k plan marketplace. Source: Planadviser.com
DOL's Final Fiduciary Rule DOL Final Fiduciary Rule Fallout: Some Potential IRS Pitfalls for IRA Custodians and Trustees Abstract: Article reviews some potential fallout from the DOL's fiduciary rule on IRA custodians and trustees in maintaining their IRA documentation and status as IRA custodians and trustees. The extent of the fallout depends on whether IRA custodians and trustees (or their affiliates) may now become fiduciaries to IRAs under the new rule. Source: Morganlewis.com Seven Actions to Demonstrate Compliance Following the DOL Fiduciary Rule Abstract: While reliance upon the BICE is only required for advisers who intend to take compensation in the form of commissions or transaction fees, the procedures delineated for the exemption reflect best practices that all advisers should routinely follow. Source: Fi360.com
Compliance and Regulatory IRS Issues Final Regulations on Allocation of After-Tax Amounts From Roth Accounts Abstract: The Internal Revenue Service issued final regulations that remove the current allocation rule and treat distributions from a Roth account made to multiple destinations as a single distribution beginning on January 1, 2016. Source: Practicallaw.com IRS Disaster Relief for Retirement Plans and IRAs Abstract: If a disaster is declared by the president, the IRS will postpone certain retirement plan and IRA deadlines for affected taxpayers. Here's a look at relevant IRS guidance. Source: Asppa.org Bay State Says Full Robos Can't Be Fiduciaries Abstract: The Massachusetts Securities Division says that robo-advisers' failure to conduct due diligence, as well as their depersonalized structure, may render them unable to provide adequately personalized invest. advice and make appropriate investment decisions. As such, "the Division" has declared that fully automated robo-advisers, as currently structured, may be inherently unable to carry out the fiduciary obligations of a state-registered investment adviser. Source: Napa-net.org
Marketplace News NFP Introduced Refreshed Brand Identity Micah DiSalvo to Lead Newport Group's Institutional Sales Envestnet Unveils Initiative to Quantify the Value of Professional Advice fi360 and Epic Advisors Establish Integration Relationship
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