The relative quickness of this one-two shot from the District Courts suggests an obvious flaw in the new Rule.
Tag "Department of Labor"
For all the good intentions, however, what will happen when the rubber finally meets the road? Will the new DOL Fiduciary Rule really level the playing field?
The DOL’s guidance on missing plan participants appears just as effective as its week 2012 Mutual Fund Fee Disclosure Rule. Yes, it’s there, but it has no viability. Still, that doesn’t mean 401k plan sponsors can ignore the issue, even if they have not lost participants.
The root of these broader fiduciary concerns lies within the domain of compliance. Everything derives from what the regulators require, what any DOL audit might look at, and what might pique the interest of class-action attorneys.
It’s critical that plan sponsors consult with compliance professionals before adding the Deemed IRA feature.
The story arc of the 401k mimics that of software. Each release adds to and builds on features and benefits over and above those of previous releases.
There is an out, of course, but that might eliminate the so-called “institutional pricing” advantage former employees have for staying in the plan in the first place.
Here’s something you don’t always see, but maybe you should.
Having no idea what the fiduciary means, and worse, not caring, most IRA R/O investors are sheep heading for their (financial) slaughter. Not anymore, if the DOL’s Phyllis Borzi has her way.
These three issues linger like a ticking time bomb. They’re out there. They’re going to go off at some point. We just don’t know when. Plan fiduciaries need to get ready for them.
