Fiduciary Advice & Education Blog
How picky is picky? Advice regs an unknown – Investment News
A hybrid of these regulatory offerings could be just want investment-advice-hungry 401(k) participants ordered, but we will have to wait and see.
Read More401(k) Participants Need Credible Advice, and Quickly
It’s no surprise to anyone that 401(k) investors need help, or should I say NEEDED help during the historic volatility we have experienced since the fourth quarter of ’07. During that time, mutual fund companies, insurance companies, and the broker dealer world has been fighting over providing advice to those investors.
Read MoreFiduciary Duty: A 60 Second Lesson
The DowJones Newswires did a good job with this brief video of explaining the difference between the “incidental advice” brokers offer and the fiduciary standard investment advisors must adhere to for their clients.
Read MoreGrand Rapids 401(k) Expert is Featured Panelist at ’09 CFDD National Conference
The lingering and wide-reaching impact of the economic crisis and impending financial planning/services industry regulatory overhaul were at the forefront of this year’s fifth annual Center for Due Diligence, or CFDD, National Conference in Scottsdale, Ariz. Chad Griffeth, an Accredited Investment Fiduciary designee from BeManaged | Actium, was among those attending the three-day educational event, focused on lessons learned from the uncertain times, more ways to implement fiduciary practices and what to expect going forward with the current efforts to make rules, regulations and enforcement more consistent and create greater safeguards for investors.
Read MoreWho’s Minding the 401(k)?
A plan’s fiduciaries have the responsibility and duty to conduct ongoing management and oversight of the various moving pieces of a 401(k) plan for the express benefit of the beneficiaries of the plan, the employees investing in it. A critical part of this responsibility is putting in place a prudent process in conducting due diligence on everything from the recordkeeping provider, TPA, investment options, reasonableness of fees, etc. as well as documenting the due diligence process of monitoring these pieces. Unfortunately, most companies do not have such processes in place, as it can be atypical behavior to document every decision.
Read MoreWhich Standard? Suitability or Fiduciary? Sign the Petition
There is a red-hot debate taking place over the difference between a broker’s suitability standard versus investment advisor’s fiduciary standard. It has been well publicized, as last year’s financial meltdown has caused many people to reconsider how they are getting their advice, as well as whether it’s truly in their best interest.
Read MoreThe “F” Word is Getting a Lot of Attention
The system would feed articles and news regarding these topics to me once a week. On average, I would get 2-5 decent articles per month. Fast forwarding to the past 12 months, I have had to change the frequency to daily so not to be buried by information overload. On Monday alone, there were 10 and that has been consistent for the past year. The point is that the interest in fiduciary responsibilities and best practices in light of the recent market volatility has never received so much attention by the media.
Read MoreTarget-date Funds Under the Microscope
Robert Powell’s article on Marketwatch is a well written overview of the concern Congress has regarding these funds’ performance and construction, which consequentially were given Congress’s blessing in the ’06 Pension Protection Act. However, it was clearly stated in the PPA that a company’s fiduciaries must do their due diligence in reviewing these funds, just like the other investment options in the plan
Read MoreAmerican 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 More3 Simple Steps on How to Decrease the Risk of Participant Lawsuits
Step #1: Take Advantage of the Available Safe Harbors. Participants need help, and one of the safe harbors specifically helps participants and protects plan fiduciaries alike. The PPA created the role of PPA Fiduciary Adviser, which provides investment advice for a fee. Most providers have not responded because the regulations are simply too onerous. However,…
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