Fiduciary Advice Regulations
American Benefits Council Opinion on 401(k) Participant Advice : Just Keep it Free of Conflicts
After reading the ABC’s opinion on participant advice, which is being openly scrutinized by various organizations trying to protect the 401(k) participant, I feel it was the most clear and concise of the responses I have read thus far. The following is our interpretation of its points: Don’t Eliminate Advice and Account Management – “Over-swinging…
Read MoreDoL Proposes Delay On Advice Rule Due to Objections from Fiduciary Industry
The DoL, fresh off releasing “final” ruling on participant advice provisions, is now recommending the delay of this rule for two months until further public commentary is considered.
Read MoreConflicting Interests – DoL 401(k) Participant Advice Rule May Not See Light of Day 1/29/09
“The controversy exists in that the person delivering the advice must adhere to specific fiduciary criteria, but their affiliated firm, whether that’s a broker-dealer, mutual fund company, insurance company, or bank, does not,” said Griffeth. The new rule “opens the door for conflicts of interest to exist on the part of brokerage firms and mutual fund firms at the sake of participants, whom I fear wouldn’t know what questions they should ask to ferret out conflicted advice.”
“…In essence, he said the broker- dealers, insurance companies, banks, and mutual fund companies could play “puppeteer” with the advisers that are meeting with participants to benefit their own pocketbooks, not the participants.” – Chad Griffeth, BeManaged | Actium
Read MoreNew Disclosure Requirements Proposed for Self-Directed Defined Contribution Plans
The U.S. Department of Labor (DOL) recently issued proposed regulations that would require all participant-directed individual account plans (e.g., 401(k) and profit-sharing plans) to make additional disclosures to participants. The regulations are part of the DOL’s continued emphasis on ensuring plan participants and beneficiaries have all the information they need to make informed decisions regarding the management and investment of their retirement savings. If finalized, the regulations would apply for plan years beginning on or after January 1, 2009.
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