It might surprise you to discover the industry’s loudest complaints against the fiduciary standard might also be the strongest arguments for the fiduciary standard.
Compliance
For all the public comments offered at the DOL’s Public Hearing on the definition of the Definition of Fiduciary, perhaps the most important statement was the one offered by Assistant Secretary to open the hearings.
The SEC’s new Form ADV Part 2 makes it harder for 401k Plan Sponsors to feign ignorance when it comes to conflicts of interest.
Since no individual 401k plan sponsors seem interested in testifying at a hearing about an issue intended to protect them, we’ve provided three possible outcomes from the DOL Fiduciary hearings and their implications for 401k plan sponsors.
Thus were lines drawn in the sand. We’re left to wonder if the tide of time will wash away those lines or merely wash away the sense of urgency for a uniform fiduciary standard.
Was the initial euphoria of proponents of the Fiduciary Standard premature? Read the fine print of the SEC report here and decide for yourself.
The question remains: Do the new DOL mutual fund reporting requirements merely add to the worries of 401k plan sponsors?
“What is intended to help participants, may hurt them as their decisions are driven by confusion and data overload.”
The DOL’s new requirements offer some good and some bad news. The question is do the benefits of the good offset the dangers of the bad? Discover both in this article.
Here’s your chance to see a real example of the new DOL 401k Disclosure Rule in practice. Complete with links to vital DOL documents.
