Thoughtleaders with the veteran experience to sift through the noise and separate the wheat of solid trends from the chaff of tiresome fads. Accurately discerning between the two can mean the difference between long-term sustainability and irretrievably sunk costs.
Tag "DOL"
In the coming ascendency of 401k PEPs, here’s what might surprise you, and here’s what might disappoint you.
Here’s something you don’t always see, but maybe you should.
This has long been demanded of fiduciaries. Nearly two centuries ago in Harvard College v. Amory, the Massachusetts court promulgated what has become known as the âprudent man rule.â
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.
All these strategies can be employed today and have proven themselves effective. Itâs unclear that disclosing projected retirement income will provide the kind of incentive that will work.
If a fiduciary must vote proxies, following the DOLâs guidance may represent the most practical alternative.
ESG isnât going away. Thereâs no way of telling if itâs a mood ring or a diamond ring. One thing is eminently clear: ESG is a product that people want right now. This complicates life for the retirement plan fiduciary.
The most pertinent issue may not be the fiduciary imperative, but the marketing imperative. This makes things extremely difficult for the 401k plan sponsor who may sometimes confuse which has priority. Hereâs an example of why a plan sponsor might be concerned.
“That is one of the key weaknesses of the SECâs Reg BI. It allows brokers to claim they are working in an investorâs best interest without being held to a legal duty of loyalty”
