SEC’s Mary Shapiro: âWhen it comes to 12b-1 fees, there is a need for more fundamental change than mere disclosure reforms and a name change.â FiduciaryNewsâ exploration of this hot potato reveals a surprising misconception.
Tag "ERISA"
Worried while Washington fiddles? These three vital questions might just help you determine if today’s DOL ruling will increase your personal fiduciary liability.
If the evolution of indexing over the decades tells us anything, it tells us todayâs budding index products âare not your fatherâsâ index.
The wildness of the equity markets and the uncertainty of our economic environment appears to be opening the eyes of the typical fiduciary to more exotic investments. The practical implication may mean greater potential liability.
Contrary to popular press reports, economic theory clearly suggests paying high fees is justified. Hereâs the cruel irony and the greatest danger posed by the myth of high mutual fund fees: by taking back some of the responsibility normally delegated to professional advisers, an active fiduciary may in reality take on a greater fiduciary liability.
Unless and until we can break the momentum of intertwined conflicts-of-interest, the greatest legacy weâll leave our grandchildrenâs children may be an outstanding bill to pay for spiraling public employee retirement benefits.
Hereâs an issue that can perplex even the most experienced ERISA/401k fiduciary: Whatâs the difference between a broker and a Registered Investment Adviser? More importantly, does the difference significantly raise the fiduciary liability for the typical fiduciary?
A written Investment Policy Statement can act as the cornerstone to regulatory and legal compliance. With this written IPS, the fiduciary has documented the justification of the appropriateness of the institutionâs mission and investment objectives. From this, the fiduciary can better evaluate and monitor the institutional fundâs investment performance. Finally, the written IPS may act as a safeguard to reduce fiduciary liability.
We donât need more regulation to prevent future Madoffs, we just need common sense (and, perhaps, a tad bit more enforcement of existing regulations). Here are five straightforward rules fiduciaries can follow to avoid their own personal investment Waterloo.
One of the biggest liability risks facing the ERISA/401k plan fiduciary derive from the inability to properly disclose and educate plan participants. The primary reason for this gap may be due to lack of specifics from the DOL regarding plan document contents and distribution of key information to participants. The suggestions offered by the ICI should help remedy this gap.
