To make the procedure more agonizing, the transition away from Chevron may feel like death by a thousand cuts. But the snail-like process of the courts has its benefits.
Tag "Fiduciary Rule"
Between the IRA Rollover matter and the redefinition of âregular services,â there is no shortage of ways to chip away at the new Rule. What might be one way we can expect to see the industry attack the Rule in front of a judge?
This broader definition of fiduciary may impose a potential hardship on a segment of the retirement industry that has been trying hard to gain a foothold in plan infrastructure.
“I was [once] a major skeptic of the use of annuities, I have subsequently changed my mind regarding the efficacy of low-cost fixed and variable annuities in both personal and retirement accounts.”
In a nutshell, what was initially considered a âpick me because you like meâ decision on the part of the prospect has been reframed as a âpick me because I sold you investmentsâ decision. Itâs a subtle distinction, but it drives the difference between a fiduciary act and a non-fiduciary act.
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.
“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”
Regulators (including the DOL) seem intent on splitting the baby in half by allowing two incompatible business models â one fiduciary with no self-dealing fees, the other non-fiduciary with conflict-of-interest fees â to coexist within the same market. Does this mean âfiduciaryâ has lost its inherent advantage?
Will These Be The Biggest 401k Fiduciary Stories In 2024?
If you have any experience in the retirement plan business, some predictions just write themselves. As in âan incredible feeling of dĂ©jĂ vu.â