A lot may depend on who Trump selects to head up the DOL in his second term. If we start seeing familiar faces, that might indicate the department’s direction.
Tag "SEC"
Honestly, I think most 401k plans are off-the-shelf items bought from the large asset management companies, purchased by executives who want to get rid of the vexing chore of setting up a retirement plan that benefits the employees.
The relative quickness of this one-two shot from the District Courts suggests an obvious flaw in the new Rule.
Herein lies the potential for a direct conflict of interest. This applies generally to all proxy voting in commingled portfolios.
Plan sponsors need to think about it in these terms: Does it make sense to have a pork-belly ETF on a 401k investment menu? How about orange futures?
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.
Back then, at least, we knew who wore the white hats and who whore the black hats. Today, thanks to muddled and often conflicting regulations for multiple agencies, everyone is wearing fifty shades of gray.
Let’s not just blame certification providers. Government agencies responsible for monitoring and enforcement are also responsible for market confusion and the dilution of the “fiduciary” standard.
“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.”
These Classic Movies (Unknowingly?) Promote The Fiduciary Standard
It seems like each decade produces a major box office hit that exudes fiduciary. This whole “best interest” thing seems to have caught on in Tinseltown. More recent movies have added a good dose of the “honesty” part of fiduciary.