“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.”
Tag "Fiduciary Rule"
In a nutshell, what was initially considered a “pick me because you like me” decision on the part of the prospect has been reframed as a “pick me because I sold you investments” decision. It’s 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 SEC’s Reg BI. It allows brokers to claim they are working in an investor’s best interest without being held to a legal duty of loyalty”
“Surveys show about half of investors don’t know how much they’re paying for advice, and about one in six think they pay nothing.”
Regulators (including the DOL) seem intent on splitting the baby in half by allowing two incompatible business models – one fiduciary with no self-dealing fees, the other non-fiduciary with conflict-of-interest fees – to coexist within the same market. Does this mean “fiduciary” has lost its inherent advantage?
Was “fiduciary” done in by over-saturation? Or was it the victim of a super successful negative campaign? Or is there something missing in our analysis?
SECURE Act recap, BI coming, and ESG sizzling.
The One Topic Every 401k Plan Sponsor Must Know Right Now: Fiduciary Education Curriculum (Part III)
Most 401k plan sponsors will readily admit they are not experts when it comes to retirement plans. They understand they have a role in the process. They understand that role carries with it certain fiduciary obligations. They understand (and accept) that role also exposes them to liabilities. This article shows how prudent delegation can mitigate much of that fiduciary liability.
FiduciaryNews.com Trending Topics for ERISA Plan Sponsors: Week Ending 6/7/19
SEC’s best interest, ERISA’s fiduciary, and through the floor on fees.