It's Not Deja Vu, It's a Brand New Best Interest Rule Making Debate
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Fiduciary Rule It's Not Deja Vu, It's a Brand New Best Interest Rule Making Debate Abstract: The release of a thousand-page "best interest" rule making package by the SEC applying to all brokers and investment advisers is being hailed as a victory by some and a deep disappointment by others; either way, it's the start of another long chapter in the epic industry battle over federal conflict of interest regulations. Source: Planadviser.com SEC Proposes Best Interest Standards Abstract: Addressing themes similar to those in the DOL rule, the SEC proposal aims to better protect retail investors by raising the standard of conduct for broker-dealers providing recommendations to retail investors and reaffirming/clarifying the terms of the relationship between retail investors and investment professionals. The proposed package of guidance is reviewed. Source: Conduent.com Secretary Galvin Slams SEC Fiduciary Rule "Fail" Abstract: High-profile regulator and Massachusetts Secretary of Commonwealth William Galvin pulled no punches in his view of the SEC's proposed fiduciary rule remake. Source: 401kspecialistmag.com »» Click here for more on the DOL's Fiduciary Rule General Items Plan Design Has Made Us Better Investors Abstract: Thanks to a decade of advancements in plan design and the rise of target-date investments, plan participants are better investors today than ever before. Source: Vanguardinstitutionalblog.com American Retirement Association Announces E-delivery Initiative Abstract: American Retirement Association CEO Brian Graff unveiled plans to address the expensive and outdated ERISA requirement to disclose information to 401k participants in paper form. The ARA's proposal would essentially flip the current orientation of the DOL's ERISA regulations, which emphasize providing paper disclosures to plan participants. Source: Ntsa-net.org Fiduciary and Plan Governance Fiduciary Duty Yellow Flags for Proxy Season Abstract: Proxy voting and company engagement practices are moving from a mere compliance issue to an integral component of investment and risk management. The old "set it and forget it" approach which relies on off-the-shelf proxy voting processes has become a risky practice. Fiduciaries are well advised to re-evaluate how their legal obligations relate to use of proxy voting in this changing environment. Source: Reinhartlaw.com ESG and Retirement Plans: The Case for Greater Compatibility Abstract: While considering Environmental, social and governance (ESG) investing strategies, it is an important part of plan fiduciary oversight to assess them thoughtfully and consistent with ERISA's fiduciary requirements. This paper's goal is to provide an assessment to help you understand the impact of ESG solutions and the potential benefits and risks for your retirement investment program now and going forward. Source: Planpilot.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Defined Contribution Consulting Support and Trends Survey Abstract: PIMCO asked the nation's top retirement consultants: How can defined contribution plan participants and sponsors achieve financial security over the long haul? Download the 24-page report here. Source: Pimco.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers Eight Mistakes Advisors Can Make When Approaching a Retirement Plan Abstract: When approaching a retirement plan, not heeding these eight tips can be a major mistake for retirement plan advisors. Source: Rixtrema.com 403(b) Plans Brief in University of Pennsylvania 403b Lawsuit Points Out Differences From 401ks Abstract: An amici curiae brief filed by the American Council on Education and other higher education associations details the history of higher education 403b plans. The Council points out that the retirement system for higher education has always looked different than the system for industrial, corporate America. Source: Plansponsor.com Ignore Those Form 5500 Instructions: 403b Plans Do Not Use Form 5330 for Late Deposits Abstract: One of the continuing confusions in how 401a rules apply to 403b plan involves the reporting rules related to the correction and reporting on the 5500 of one of the most common errors in any elective deferral plan: the late deposit of those deferrals into the plan. Neither non-ERISA or ERISA 403b plans will ever file a Form 5330. Ever. Even when the VFCP program is being used to correct the late deposit. Source: Businessofbenefits.com »» Click here for More 403(b) Material Court and Legal 401k Lawsuits Being Brought More Aggressively Against Retirement Plan Advisers Abstract: Retirement plan advisers are increasingly being drawn into 401k lawsuits, as litigation creeps down market and plaintiffs' lawyers test out new legal theories to ensnare advisers, according to a panel of litigation experts. Source: Investmentnews.com (registration may be required) 401k Plan Participants Challenge Principal's Management of TDFs Abstract: The lawsuit alleges Principal used proprietary investment vehicles, rather than other investment vehicles, and share classes with higher fees for the underlying TDF investments, to produce more income for itself and its subsidiaries. Source: Planadviser.com »» Click here for more Court and Other Legal Issues State-Based Retirement Programs Illinois' State-Sponsored Retirement Program Enters Pilot Phase Abstract: It's been more than three years since then-Governor Pat Quinn signed legislation creating the Secure Choice program. But the retirement savings program for workers whose employers don't offer one is finally becoming a reality. Source: Northernpublicradio.org Compliance and Regulatory Protect Your Qualified Plan From RMD Failures Abstract: Qualified retirement plans are subject to Required Minimum Distribution rules which, very generally, require that a minimum amount of benefit commence no later than April 1 following the year when a participant attains age 70 1/2. It is important to protect your qualified plan from RMD failures to avoid potential tax consequences. Source: Watkinsross.com IRS Requests Input on Possible Expansion of Determination Letter Program in 2019 Abstract: In Notice 2018-24, the Treasury Department and IRS request comments on the potential expansion of the determination letter program for individually designed plans during 2019. As part of their commitment to annually review the scope of the program, they are looking for comments on the types of plans that should be allowed to seek a determination letter as well as specific issues for those plans that would justify the need for review. Source: Groom.com Tips for Handling Combined DB/DC Plan Testing Abstract: Nondiscrimination testing has been likened to rocket science. And that's in reference to just one flavor of plan. So, imagine how exponentially those complexities must increase when the testing involves both defined benefit and defined contribution plans. Source: Asppa.org Keep Track of 401k Participants So They Don't Go Missing Abstract: Increased job-hopping and frequently forgetting to update their contact details with previous employers are two reasons why participants in 401k and similar employer-sponsored retirement plans may "disappear." Creating a "missing-participant program" can help plan sponsors comply with the requirement that they make sure former employees can access their savings. A proposed legislative remedy also could be on the way. Source: Shrm.org »» Click here for more Compliance and Regulatory Material Marketplace News Manning & Napier Integrates Fi360's Fiduciary Tool Into Strategies »» Click here for More Marketplace News
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