Today, the understanding of conflict-of-interest fees goes well beyond plan sponsors. Individual investors also understand how they can act as a better fiduciary for their own personal investments.
Tag "Conflict of Interest Rule"
The need for 401k plan sponsors to increase their focus on their fiduciary duties and, specifically, execute strategies with can reduce their fiduciary liability, arises from this New Fiduciary Era in which we find ourselves. Fortunately, the path to implementing these strategies is well worn. It should be easy to accomplish.
For 8 years as Assistant Secretary of EBSA, Phyllis Borzi fought vigorously to protect plan sponsors and retirement savers under the uniform fiduciary umbrella. Here, she answers questions about the past, present and future of the Fiduciary Rule.
Be careful what you wish for because sometimes the cure can be worse than the disease.
For that to work, however, it’s not enough to change the titles brokers use – to make them call their sales representatives “salespeople” and call their services “sales recommendations” – you’d also have to completely change the way they market themselves so that their marketing messages are consistent with their regulatory status.
“Hopefully,” says Reese, “this past year gave employers a better understanding of what they need to look out for to act as fiduciaries for their plan participants.”
The DOL’s Assistant Secretary reveals how she and her staffed learned from initial attempts and why it led to a much stronger Conflict-of-Interest Rule.
He says it doesn’t pass the basic smell test, and that’s just warming up…
