DOL Fiduciary Rule Will Be Undone in a Cruel Twist
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In This Issue
DOL's Fiduciary Rule DOL Fiduciary Rule Will Be Undone in a Cruel Twist Abstract: Perhaps the biggest legislative effort since 1940 to put client interests ahead of Wall Street will be allowed to effectively die in a Texas court at the hands of what was once deemed to be a two-bit lawsuit, according to Jason Roberts, CEO of the Pension Resource Institute in Los Angeles. Source: Riabiz.com The DOL Fiduciary Class Action Lawsuit That Will Really Transform Financial Advice Abstract: Right now there is no universally accepted minimum competency standard for financial advice, though certainly recognized rigorous designations that include both education and an advice process provide a likely path of safety for Financial Institutions. Which means in the coming year, there may soon be explosive growth in programs like the CFP and RMA, as Financial Institutions recognize and then try to minimize their exposure to a class action lawsuit for failing to meet the fiduciary duty of care. Source: Kitces.com DOL Releases Second Set of FAQ Guidance on Fiduciary Rule Abstract: The DOL issued a second set of Frequently Asked Questions providing guidance on DOL's rule re-defining who is a fiduciary because of providing invest. advice for a fee. This second set of FAQs addresses interpretive questions about the Fiduciary Rule itself, including several of the important exceptions to fiduciary status included in the rule. Source: Groom.com »» Click here for more on the DOL's Fiduciary Rule 403(b) Plans Abstract: You may have a 403(b) retirement plan available, but all income earners also have the option to save for retirement in a Roth IRA. So, which one makes more sense? This article explains how they work and the differences. Source: 403bwise.com Correcting the "Best Guesses" on 403(b) Plan Terms Abstract: The IRS has announced the end of the first remedial amendment period for 403(b) plan documents, in Revenue Procedure 2017-18. The last day of that RAP will be March 31, 2020. Now, what do you do with it? Source: Businessofbenefits.com »» Click here for More 403(b) Material Fiduciary and Plan Governance Material Enhancing DC Plan Processes and Outcomes in 2017 Abstract: With a backdrop of an uncertain regulatory environment and heightened litigation activity with a significant increase in not only the volume, but also the breadth of claims, 2017 provides an opportunity to double down on fundamentals. In short, this is an opportunity to go back to the basics, revisit process, past decisions and documentation. Source: Rocaton.com Understanding Your Retirement Plan Fee Methodology Abstract: Understanding your retirement plan's fees is not only a good practice, it's a fiduciary requirement. The principal reason fees have been thrust into the limelight is that plan participants often bear most, if not all the cost of running the plan. This article does not discuss how to determine if fees are reasonable, but instead explores a relatively new debate over which fee assessment methodology is fairer. Source: Strategicbenefitservices.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Mercer Unveils Canadian Retirement Outlook for 2017 Abstract: Mercer launched its 25th Annual Retirement Outlook and Fearless Forecast series with an event in Toronto, projecting the retirement industry is poised for change in 2017 as more employers look at new approaches to meet the evolving pension landscape and employee demands. Source: Mercer.ca Abstract: The most common DC match turns out to not be the one that participants were more likely to get, according to a new report. Altogether, the most common match rates for employee contributions (with various limits on the maximum employee contribution matched) were 50% and 100%, both used by about 37% of plans, while the most common percentage of employee contributions matched (with a variety of limits on the percentage of the contribution matched) was 6%, used by 34.3% of plans. Source: Asppa.org »» Click here for More Studies, Research and White Papers Items of Special Interest to Service Providers Winning Retirement Plan Business Abstract: To be successful in the retirement plan space, the advisor must bring plan design ideas to the table and put forth a viable action plan to improve the success of the company's retirement program. One way to do that is to partner with a TPA. Source: Consultrms.com How to Sell Investment Services Abstract: The term "consultative selling" was first used by author and sales expert Mack Hanan. The concept is simple. Know what your customer needs and offer them solutions to their problems. The process is a two-way street. Both buyer and provider are actively involved and should communicate clearly and with respect. Source: Pensionriskmatters.com Court and Other Legal Issues Are Forum Selection Clauses Valid Under ERISA? Abstract: The Supreme Court, for the second time, has now taken a pass on ruling on whether ERISA plans can contain forum selection clauses. A number of courts have enforced forum selection clauses in ERISA-governed plans, essentially treating them the same in that context as they would be treated in an action involving a typical private contract, where parties are generally free to select a forum for their disputes. Source: Bostonerisalaw.com Franklin Resources Can't Get 401k Fee Lawsuit Dismissed Abstract: Franklin Resources lost its bid for quick dismissal of a lawsuit claiming that it stuffed its workers' 401k plan with in-house mutual funds that carried excessive fees and performed worse than competitors' funds. Source: Bna.com (registration may be required) »» Click here for more Court and Other Legal Issues Compliance and Regulatory Qualified Retirement Plans in 2017 and Beyond: Resources and Considerations for Employers Abstract: The IRS published its first Required Amendments List in early December, providing an opportunity to develop procedures for maintaining qualified status in 2017 and beyond. This article discusses some resources and considerations that may help to inform plan sponsor. Source: Caplindrysdale.com 2017 Key Administrative Dates and Deadlines for Calendar-Year DC Plans Abstract: This is a 4-page retirement plan chart and 2017 calendar for defined contribution plans, published Milliman. The document provides key administrative dates and deadlines for calendar-year plans. Source: Milliman.com IRS OKs Use of Forfeitures as QNEC/QMAC/Safe Harbor Contributions Abstract: Proposed IRS changes to 401k regulations will allow employers to use forfeitures as qualified nonelective and qualified matching contributions to help pass nondiscrimination tests and as safe harbor contributions. The change is proposed to be effective after it is finalized, but can be relied on now, great news for employers who have long operated using this logical approach. Source: Conduent.com »» Click here for more Compliance and Regulatory Material Marketplace News Prudential Adds Six DCIO Team Members to Support Growth Advisor Group Appoints Steve Chipman as SVP, Strategic Acquisitions GSM Marketing Introduces Advisor Connect Sheridan Road Financial Expands Denver Team »» Click here for More Marketplace News
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