Passage of the CHOICE Act by the House Financial Services
Committee could signal a further blow to conflict of interest regulations
adopted by the Obama administration.
The Financial Services Committee has approved the CHOICE Act for
consideration by the full House of Representatives, a move considered by some
to be the first real step towards Congressional repeal of Dodd-Frank regulations
and the Department of Labor (DOL) fiduciary rule.
The legislation is sweeping and would undue or replace much
of the Dodd-Frank
Wall Street reforms adopted by Democrats when they held significant majorities
in the wake of the 2008-09 financial crisis.
Interestingly, in the executive
summary of the CHOICE Act published by the Republican members on the Financial
Services Committee, there is only one very brief, single-bullet-point mention
of the DOL fiduciary rule—and this bullet point comes at the very end of the
document. It is probably too much to read into that symbolic detail, but the CHOICE
Act’s impact on the DOL fiduciary rule, and even on particular elements of
Dodd-Frank, could potentially be renegotiated by the full House and Senate.
In the actual text of the legislation there is more detail
about how the fiduciary rule will be treated. The CHOICE Act seeks to “repeal
the DOL’s fiduciary rule and require the Securities and Exchange Commission (SEC),
before promulgating any such rule, to report to the House Committee on
Financial Services and the Senate Committee on Banking, Housing, and Urban
Affairs on whether retail customers are being harmed because broker/dealers are
held to a different standard of conduct from that of investment advisers; alternative
remedies will reduce any confusion and harm to retail investors due to the different
standard of conduct; adoption of a uniform fiduciary standard would adversely
impact the commissions of broker/dealers or the availability of certain
financial products and transactions; and the adoption of a uniform fiduciary
standard would adversely impact retail investors’ access to personalized and
cost-effective investment advice or recommendations about securities.”
Additionally, the SEC’s chief economist is “required to
support any conclusion in the report with economic analysis.” Finally, it
requires the DOL, “if it promulgates a fiduciary rule under ERISA, to
substantially conform it to the SEC’s standards.”
NEXT: Financial
institutions want CHOICE
Among the advocacy groups and lobbying organizations to commend
the progress of the CHOICE Act is the Financial Services Roundtable (FSR),
which called the advancement of the legislation “an important first step to
improving the regulatory system and promoting economic growth.” FSR signaled it
“supports many of the provisions in the Act.”
“Improvements to financial regulations can lead to economic
growth, while still protecting taxpayers and consumers,” argues FSR CEO Tim
Pawlenty.
In commentary shared with PLANADVISER, Pawlenty explains his
group “strongly supports applying a best interest standard to all persons
providing personalized investment advice and guidance to all retail investors,
not just for advice related employee benefit plans, individual retirement
accounts (IRAs) and other entities treated as plans for purposes of the Code—retirement
investors.”
However, “for the sake of clarity and transparency,” FSR
argues the regulation and oversight of investment advisers, broker/dealers and
others engaged in providing personalized investment advice about securities to
retirement investors “should be the primary responsibility of the Securities
and Exchange Commission.”
Pawlenty further argues the SEC “has the expertise,
knowledge and authority to most effectively and efficiently coordinate the
myriad of applicable laws and regulations pertaining to such investment activities.
State insurance authorities should also take the lead on the regulation of
annuities and insurance products, including life insurance companies and their
agents or distributors.”
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CAPTRUST Financial
Advisors announced that the InTrust
Fiduciary Group, which specializes in institutional retirement consulting,
has joined the CAPTRUST family.
InTrust offers fiduciary guidance in various aspects of retirement
plan management. It specializes in recordkeeping provider analyses, plan design
and benchmarking, and investment policy.
“Regulatory mandates are evolving within our industry,
but InTrust’s fiduciary duty never wavers,” says company President
Michael Maresh. “Joining CAPTRUST, a firm that shares the same core
beliefs and values, provides us with the resources necessary to strengthen and
broaden the services we provide for our clients, while continuing our
commitment to serve as their advocate and trusted planning partner. We are
extremely excited for this partnership.”
The move marks CAPTRUST’s entry into Austin, Texas,
following its move into Dallas and Houston.
CAPTRUST offers advisory teams numerous resources designed
to accelerate growth and add value to the client experience. It now has 120
advisers across 35 locations and advises on approximately $229 billion in
client assets.
NEXT:Nuveen Expands DCIO Business
Nuveen Expands DCIO
Business
Asset management firm Nuveen is growing its Defined
Contribution Investment Only (DCIO) business with the addition of several
executives.
Kate Jonas will
serve as leader of the Consultant Relations team. She will support the
firm’s efforts in the defined contribution (DC) and defined benefit (DB) plan
markets. She joins from BlackRock’s Global Client Group, where she led DC
consultant relations for the institutional DC team covering the United States
and Canada.
Christine Stokes
joins as head of Retirement Practice
Management responsible for supporting
the distribution growth strategy. She has worked at Voya Investment Management
where she was a senior product manager focusing on multi-asset solutions for
the institutional, intermediary and affiliate businesses.
Daniel Noschese who joined the DCIO Sales team will work with retirement specialists in the
Midwest. Formerly with Putnam Investments, Noschese served as a Defined
Contribution Investment Specialist where he was responsible for external DCIO
sales for the Midwest region.
Matthew Kasa also joined the DCIO Sales team. She is responsible for DCIO sales and retirement
adviser development in the Southwest. Most recently, Kasa was a vice president
for DCIO sales in the southwestern United States with American Century
Investments.
Ashish Gandhi will join in mid-May with
responsibility for DCIO Institutional
Sales. He will execute Nuveen’s new business development efforts directed
at large institutional clients representing Nuveen’s full suite of capabilities
including its target -date offerings to DC plan sponsors. Gandhi was previously
a director within LMCG Investments’ institutional business.
Nuveen’s DCIO team works in consultation with plan sponsors,
consultants and retirement plan advisers to evaluate the investment menus of
retirement plans and identify ways to improve outcomes for plan participants.
NEXT: Stadion
Names Chief Business Development Officer
Stadion Names Chief Business Development Officer
Stadion Money Management has appointed Todd
Lacey as chief business development
officer of Stadion’s retirement business. This newly created position will
entail overseeing the relationships with Stadion’s current retirement
recordkeeping partners, as well as identifying and developing new channels of
distribution and product development within its expanding retirement business.
“In recent years, we’ve seen growing demand from the
financial adviser community to broaden our suite of retirement products,” says Jud Doherty, Stadion’s president and CEO.
“Todd brings extensive experience in this industry, making him the ideal
addition to Stadion’s leadership team as we expand our already deep footprint
in the retirement space.”
Lacey brings 20 years’ experience in the retirement industry
to Stadion. He previously held several leadership roles at Transamerica, most
recently serving as EVP of Strategy and Corporate Development for Investments
and Retirement. Prior to Transamerica, Lacey was president of The (k)larity
Group, a retirement plan advisory firm and 2010 PLANSPONSOR Retirement Plan
Adviser Team of the Year finalist.
Stadion also announced that Kerr McGowan has been promoted to SVP, Retirement Solutions. In this new role, Kerr will be leading
the implementation and development of retirement products. Kerr has been with
the firm for more than 10 years, having a key role in retirement product
development and relationship management.
NEXT: SSGA Expands SPDR Business
SSGA Expands SPDR
Business
State Street Global
Advisors (SSGA) has announced two new additions to its SPDR business. Noel Archard has been named head of global SPDR product, and Seth Morrison has been named head of global SPDR marketing.
Archard will be responsible for product strategy,
innovation, range and lifecycle management for the global SPDR ETF business. He
brings to this newly created role more than 20 years of experience in global
asset management. Most recently, he was country head of BlackRock in Canada. In
this position, he was responsible for growing the company across all business
lines within this market. He also worked for Vanguard, where he helped build
and establish the firm’s ETF programs. He is a graduate of Northwestern
University and a CFA Charterholder.
Also in a newly created role, Morrison will be responsible
for all marketing activities across the SPDR business in North America, EMEA
and APAC. He joins SSGA from Vanguard
where he served as head of Flagship Business Development Group, the high
net-worth sales group for their U.S. Retail business. Prior to this, Morrison was
head of Vanguard’s International Marketing team. Previously, he spent more than
10 years at Franklin Templeton where he held multiple global executive roles in
marketing and product distribution.
“Both of these new roles demonstrate our commitment to
expanding the reach and relevancy of SPDR value-added services and our broad
range of ETF investment capabilities to institutional and intermediary clients,”
says Nick
Good, co-head of the global SPDR business.
NEXT: Segal Group
Names Chief Actuary
Segal Group Names Chief Actuary
Eli Greenblumhas been named The
Segal Group’s Chief Actuary.
Greenblum brings more than 30
years of managerial and actuarial consulting experience to his new role. He is
a member of several actuary organizations including the Society of Actuaries
and member of the American Academy of Actuaries. He recently served as vice
president for the American Academy of Actuaries.
“The Chief Actuary has overall responsibility for The Segal Group’s actuarial
services, including overseeing quality and establishing policies,” says President and CEO David Blumenstein. “Eli has a wealth of actuarial experience advising
multiemployer, public-sector and single-employer plans.”
NEXT: Neuberger Berman Names Head of ESG
Investing
Neuberger Berman
Names Head of ESG Investing
Independent, employee-owned investment manager Neuberger Berman has named Jonathan Bailey as head of Environmental, Social and Governance (ESG) investing.
Bailey will work with the firm's investment teams and
research departments to further incorporate ESG principles into the equities,
fixed income and alternatives platforms. He also will help portfolio managers
consider ESG as part of their analytical approach to evaluating companies and
markets. In addition, he will chair the firm's ESG Investment Advisory
Committee.
Bailey joins Neuberger Berman from Focusing Capital on the
Long Term, a think tank. Beforehand, he served as associate partner at McKinsey
& Company where he advised pension plans, asset managers, and other finance
institutions on a range of issues related to investment strategy,
organizational structure and ESG integration. He’s also worked on
sustainability and governance investment projects for both former Vice President
Al Gore and former British Prime Minister Tony Blair.
The firm notes that integration of ESG factors into
investment analysis and portfolio construction can be valuable in identifying
companies whose sustainable business models and risk management cultures may
afford attractive long-term investment opportunities.
NEXT: Putnam Hires Head of Sustainable
Investments
Putnam Hires Head
of Sustainable Investments
Katherine Collins
has joined Putnam Investments as head of Sustainable Investing. She will
be tasked with overseeing the firm’s environmental, social and governance (ESG)
investment business, which is expected to include managing strategies for
institutional and retail mutual fund clients. She also will responsible for
driving overall thought leadership on the topic.
Previously, Collins was CEO of Honeybee Capital, a
research firm focused on ESG investment issues. Earlier, she worked for
Fidelity Management and Research Company from 1990 to 2008. Her roles included
portfolio manager for the Fidelity America Funds, where she launched a pilot
investment fund with a sustainable and socially responsible mandate. She was
also a director of Equity Research and portfolio manager for the Fidelity
MidCap Funds.
“Investing through the lens of environmental, social, and
governance is redefining what asset management can accomplish,” says Robert L. Reynolds, Putnam’s president and
chief executive officer. It is a
concept that is becoming increasingly synonymous with good long-term investing
and is serving to help identify opportunities. Katherine’s proven leadership
and expertise will ensure we continue to move to the forefront of this rapidly
growing field.”
She earned a master’s degree in Theological Studies from
Harvard Divinity School and a bachelor’s degree with honors in economics and Japanese Studies from Wellesley College. She also holds the Chartered Financial
Analyst designation.
NEXT: Janney Montgomery Scott Expands Fixed
Income and Mortgage Trading Desks
Janney Montgomery Scott Expands
Fixed Income Business
Janney
Montgomery Scott, a full-service wealth management and investment banking firm,
is expanding its Fixed Income division with the addition of several industry
professionals.
Brittany
Broccard, Jamie Carlson, Robert Fink, Michael Foley, Sanford Goldstein and Ross Heller joined
Janney’s Fixed Income team.
Broccard joins from the
CD/Structured Products group from Edward D. Jones, where she worked as a CD and
Rates Trader.
Carlson, formerly with CL King &
Associates, joined the firm as a director.
With more than 30 years of experience in the fixed income market, he has held a
variety of sales and management positions throughout his career. Fink,
his former colleague at CL King & Associates, also joined as a director. He previously held sales
positions at Mesirow, Cantor, RBS Greenwich Capital and Barclays.
Foley joins Janney from INTL FC
Stone/GX Clarke as a director in the
firm’s Securitized Sales group.
Goldstein
also joins
from CapRok Capital as director in
the Securitized Sales group.
Previously, he held positions at DLJ and Kidder Peabody.
Ross
Heller,
formerly with Bay Crest Partners, joined Janney as a managing director in its Securitized
Sales group. He previously held sales, trading and structuring positions at
RBC Capital Markets, Nomura, JP Morgan and Merrill Lynch.
“As
Janney continues to expand its platform, we are excited to welcome such a
seasoned lineup of fixed income professionals to our team,” says Michael McNamara, head of Fixed Income Sales. “We’re confident that Brittany, Jamie,
Robert, Michael, Sanford and Ross will advance Janney’s position in the market
ensuring that clients receive the highest level of service, advice and
guidance.”
NEXT: PSCA Names Executive Director
PSCA Names Executive
Director
John M. (Jack)
Towarnicky has joined the Plan
Sponsor Council of America as the organization’s executive director.
Before joining the PSCA, Towarnicky was a visiting assistant
professor of management at Duquesne University. Prior to teaching, he
served in a benefits compliance role at Willis Towers Watson. He’s also led the
corporate benefits function at Nationwide Mutual Insurance Company. Moreover,
he’s served in benefits leadership roles at several companies including Oil
E&P, Cooper Industries, and Marathon Oil. He has also served on
boards of several benefits trade associations including the American Benefits
Council, World at Work, the Corporate Board of the International Foundation of
Employee Benefit Plans, and the Council on Employee Benefits.
“Jack brings both experience at employee benefits trade
associations and with plan sponsors,” says Stephen
McCaffrey, PSCA Board Chairman. “After an extensive search, we are pleased
to find a leader with deep experience who can continue the growth and success
of our organization.”
NEXT: Former BlackRock Exec
Launches Retirement Readiness Firm
Former BlackRock Exec
Launches Retirement Readiness Firm
Laraine McKinnon,
former managing director at BlackRock is departing her roll and taking lead at
her new firm named LMC17. She
announced the company is determined to bring an independent perspective and
heightened focus on building effective retirement readiness programs. It will
serve several players in the industry including asset managers, advisers,
recordkeepers, and select plan sponsors.
Based in Silicon Valley, LMC17 will also focus on diversity
and inclusion programs designed to help local technology firms onboard, retain
and promote diverse talent.
"It's a critical time for financial services firms to
re-frame their value proposition and understand how to deliver best practice
401(k) services to large and small American companies,” says McKinnon “There's
increased pressure – from the regulatory environment to shifting demographics
to a very competitive FinTech marketplace – and companies need to figure out
how they're going to deliver retirement to millions of participants. LMC17
builds custom strategic sales programs that capitalize on a provider's
strengths."
McKinnon is a retirement readiness expert who has served leadership
roles at BlackRock, Barclays Global Investors, and Wells Fargo Nikko Investment
Advisors. Her thought leadership includes optimizing 401(k) plan design,
sophisticated data analytics and apps, employee engagement through financial
wellness, workforce strategy, and removing behavioral roadblocks.
McKinnon also builds diversity and inclusion programs to help
firms and individuals. She is the founder of a women's leadership
incubator in Silicon Valley and sits on the Board of The CLUB Silicon Valley.
She earned a bachelor’s degree, cum laude, in political science and women's
studies from Wellesley College.