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.
Tag "SEC"
“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.”
Today, in reading some of the headlines, you’d think they’re greater than sliced bread. They may be. They may not be. Still, there are differences, and 401k plans sponsors would benefit from practicing the utmost in due diligence when determining if CITs are the right fit for their plan.
“Perhaps the continued confusion can be expected given that the term ‘best interest’ is not defined in Reg BI and the word ‘fiduciary’ is not used in defining the new standard. It makes it harder to understand.”
Why are there two kinds of Target Date Funds and why does that doom this particular group of people saving for retirement in their company’s 401k plan?
It is the world we inhabit right now. Your company is good for the world because you say so. And no one can legitimately argue with your feelings.
This is an all too common problem,… It’s important right now for 401k plan sponsors to urge their service providers to educate employees about it.
If a fiduciary must vote proxies, following the DOL’s guidance may represent the most practical alternative.
“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.”
Just as summer changes into fall, Reg BI will change the way all participants – investors, service providers, and 401k plan sponsors – interact with each other. These are the changes we might expect.
