The Fiduciary Rule Wipeout: Fred Reish Shares What Happens and What's Next
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Fiduciary Rule The Fiduciary Rule Wipeout: Fred Reish Shares What Happens and What's Next Abstract: The DOL Fiduciary Rule died, or did it? In this podcast Fred Reish, ERISA Attorney with Drinker Biddle, and a follower of the long and winding path of the fiduciary rule shares what happened and what's next. "We're in sort of a mess right now." ---Fred Reish Source: 401kfridays.com DOL Announces Temporary Enforcement Policy in Response to Fifth Circuit Decision Abstract: Under the FAB, DOL states that it "will not pursue prohibited transaction claims against invest. advice fiduciaries who are working diligently and in good faith to comply with the impartial conduct standards for transactions that would have been exempted in the BIC Exemption and Principal Transactions Exemption, or treat such fiduciaries as violating the applicable prohibited transaction rules." Source: Groom.com DOL Field Assistance Bulletin 2018-02 Abstract: This Bulletin announces a temporary enforcement policy on prohibited transaction rules applicable to invest. advice fiduciaries. Source: Dol.gov SEC Proposes New Interpretation of Fiduciary Duty Abstract: The Proposed Interpretation sets forth the SEC's views of investment advisers' fiduciary duties under the Advisers Act, including the duties of care and loyalty, and the SEC's views on an investment adviser's ability to vary or modify the fiduciary duty. Such an interpretive proposal of an existing obligation, unlike a rule or form proposal, could have some legal effect from the date of its publication and could be cited in SEC enforcement proceedings. Source: Akingump.com SEC Proposes Fiduciary Rule for Broker-Dealers Abstract: The SEC published a separate proposal related to the conduct standards broker-dealers must comply with when engaging retail customers. This article provides both the context behind the proposal as well as a general overview of its requirements. In addition, this advisory briefly discusses the implications associated with its implementation. Source: Kattenlaw.com »» Click here for more on the DOL's Fiduciary Rule General Items How Employers Think About Financial Wellness Abstract: Employers have a vested interest in promoting the financial health of their employees. To help address this issue, increasing numbers of employers are implementing financial wellness programs that provide education and tools to help employees adopt financial behaviors to best manage day-to-day finances, achieve important long-term financial goals, and help protect against key financial risks. This survey attempts gain perspective on how employers think about their benefits programs overall, and to gauge the role that financial wellness programs play. Source: Prudential.com Fiduciary and Plan Governance Socially Responsible Investing and the Plan Fiduciary Abstract: Retirement plan fiduciaries increasingly find themselves in the difficult position of having to respond to social concerns when they are raised by plan participants and beneficiaries while fulfilling their fiduciary duties under ERISA. In fact, ERISA plan fiduciaries and the Department of Labor have been wrestling with the concept of socially responsible investing for many years. Source: Employeebenefitsupdate.com How to Truly Measure the Value of a Fiduciary Abstract: One of the many problems with the fiduciary standards proposed by the DOL and SEC is that they do not understand the value of a fiduciary. They do not understand what matters as evident by their singular focus on complex and lengthy disclosures. Source: 401kspecialistmag.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Many Small-Business Leaders Express Limited Knowledge of Retirement Plan Fees Abstract: Many small-business owners and managers don't have a good feel for how much they or their employees pay in fees to their retirement plans, according to a survey conducted by The Pew Charitable Trusts. The survey results indicate that many of these business leaders -- like many workers -- have limited knowledge about plan fees, a reality that can be detrimental to workers' long-term finances. Whether savers pay high or low fees on their investments can make a large difference over time in the growth of retirement savings. Source: Pewtrusts.org Financial Literacy Isn't Financial Wellness for Canadian Employees Abstract: Mercer announced findings of its Inside Employees' Minds Financial Wellness survey. More than 1,500 employees across Canada were asked about their financial attitudes, preferences and behaviors to identify steps employers need to take to help workers achieve it. Findings suggest that although financial literacy levels are high, knowledge is not translating into action and financial security and wellness. Source: Mercer.ca Workers Willing to Sacrifice Pay for Better Retirement Benefits Abstract: Most U.S. workers are willing to swap their pay for greater retirement benefits, but far fewer would trade off pay for better healthcare coverage, a Willis Towers Watson survey shows. The survey found that 66% of respondents would make higher monthly payments for more generous retirement benefits, and 61% would exchange more pay for a guaranteed retirement benefit. Source: Hrdive.com »» Click here for More Studies, Research, and White Papers Target-Date Funds The $1 Trillion Target-Date Fund Landscape in Five Charts Abstract: Target-date funds hit a momentous mark in 2017 by eclipsing $1 trillion in assets. The funds' unimpeded growth means target-date funds play an increasingly important role in retirement success for more and more investors. Morningstar's recently released annual report covers recent developments in the competitive landscape. Here's a summary of target-date fund landscape in just five charts. Source: Morningstar.com 2018 Target-Date Fund Landscape Abstract: This 61-page report covers recent developments in the competitive target-date fund landscape, and then it highlights noteworthy considerations for target-date investors in five areas: Price, Performance, Parent, People, and Process. Source: Morningstar.com »» Click here for more on Target-Date Funds Legislative and Washington DC The Drought Is Over: Recent Legislation Affecting Retirement Plans Abstract: New legislation provides several significant modifications affecting retirement plans, effectively eliminating the legislative drought experienced in recent years. Source: Truckerhuss.com »» Click here for more on Legislative Actions Compliance and Regulatory Reasonable Cause for a Missed Required Minimum Distribution Abstract: Retirement funds were not, however, intended to primarily provide the participant's beneficiary with benefits. As such, Congress created Code Section 401(a)(9) for disbursing retirement benefits to the participant while alive. Participants who ignore the RMD rules must pay a 50% excise tax. A missed RMD resulting from an employer's misunderstanding of the employee's retirement status could be a good case for a reasonable cause to have the 50% penalty waived. Source: Penchecks.com FAQ on Required Minimum Distributions Abstract: This item highlights some FAQs regarding Required Minimum Distributions. It is intended to provide plan sponsors with a broad overview of the general requirements of Internal Revenue Code Section 401(a)(9). Source: Icemiller.com »» Click here for more Compliance and Regulatory Material Marketplace News Voya Financial to Acquire Pen-Cal Administrators Empower Retirement Adds $75 Billion in Assets »» Click here for More Marketplace News
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