Compliance November 16, 2023

Biden Expected to Sign Continuing Resolution

The resolution would prevent a government shutdown and keep the DOL funded through February 2.

Reported by

The Senate passed a continuing resolution Wednesday night that would keep some government departments open through January 19 and others through February 2. The CR was passed by the House on Tuesday night, and President Joe Biden is expected to sign it before the deadline Friday night at 11:59 p.m.

The CR would fund the departments of Transportation, Housing and Urban Development, Veteran’s Affairs, Energy, and Agriculture through January 19. The remaining departments, including the Department of Labor, would be funded through February 2.

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.

The CR funds the government at current levels for 2023 and allows federal operations to continue normal functions and scheduled projects. This includes regulatory rulemaking such as the fiduciary adviser proposal, the comment period for which expires on January 2.

The House has postponed proceedings on the budget bill for the Departments of Labor, Education and Health and Human Services; though it is considered likely to pass the House. The bill in its current form would block the DOL’s fiduciary adviser proposal, independent contractor proposal, and final rule on environmental, social and governance considerations in retirement plans and proxy voting.

The bill would also fund DOL, including the Employee Benefit Administration, at levels significantly less than the Senate’s version of the same bill and less than the budget deal struck in May between Biden and former House Speaker Kevin McCarthy, R-California.

The White House has already announced its intention to veto this House appropriations bill, which is unlikely to pass the Senate in its current form.

Overall, the House has passed seven of the 12 annual appropriations bills that fund the government for a full fiscal year. The Senate has passed three.

The House has recessed for the Thanksgiving holiday. Members are expected to resume work in Washington November 28. The Senate is scheduled to be out of Washington next week for Thanksgiving and a “state work period,” November 20 to November 24.

Deals & People November 16, 2023

Edelman Financial Engines Acquires PRW Wealth Management

The firm is looking to sync its growing wealth management footprint to retirement managed account offerings, according to its CFO.

Reported by

Edelman Financial Engines LLC on Thursday announced the acquisition of PRW Wealth Management LLC, a registered investment adviser headquartered in Quincy, Massachusetts.

PRW manages more than $500 million in assets under management for approximately 200 clients, including individuals, families, endowments and foundations, and business owners. The firm provides a range of wealth management capabilities, focusing on strategic planning, investment management and wealth transfer, according to the announcement.

For more stories like this, sign up for the PLANADVISERdash daily newsletter.

PRW is the fifth acquisition made by Edelman in the past 13 months, continuing the expansion of the firm’s wealth planning capabilities across key regions nationwide. As a leader in retirement plan managed account offerings, Edelman’s Suzanne van Staveren, executive vice president, chief financial officer and chief operating officer, believes more employers are seeing the need to help employees, both within and beyond their 401(k) account.

“Our managed accounts have been available in the workplace for nearly 20 years, and we have continued to expand the offering to help with retirement income and planning,” she wrote in an email. “More employers are recognizing the need for holistic, comprehensive financial planning and investment advice, especially for employees who have more complex needs and who are increasingly looking to their employers for this support. With our industry-leading network of retail financial planning and wealth management professionals, Edelman Financial Engines is uniquely positioned to provide this help.”

Edelman offers an in-plan experience, its planners are free of product conflict and the firm can manage both qualified and nonqualified assets, something few IRAs can do, according to Staveren. This is especially relevant as many employers seek to retain assets in plan.

“Depending on the client’s preference, we can help manage those assets in the plan or through a rollover,” she said. “With our wide range of services, we can help employees who prefer tools like online advice all the way to holistic discretionary financial help with a dedicated adviser.”

The PRW transaction follows Edelman’s acquisitions of Align Wealth Management (2023), Erman Retirement Advisory (2022), Herrmann & Cooke (2022), Smart Investor (2022) and Viridian Advisors (2021).

“We work with some of the largest employers in the country who have a nationwide footprint,” said Staveren. “Our recent acquisitions have been in markets where we also see significant overlap with retirement plan participants, particularly in the Pacific Northwest, California and now in the greater Boston area.”

Growth through acquisition remains a key area of focus for Edelman, and the firm expects activity will increase in the coming quarters as it continues conversations with partners, according to a company statement.

“Joining Edelman Financial Engines provides us with a depth of additional resources and the ability to maintain the feeling of a multi-family office,” said Rick Renwick, co-founder of PRW, in a statement. “We look forward to delivering cost-effective and tax-efficient customized portfolios built upon the investment philosophy of Nobel Prize-winner and Edelman Financial Engines co-founder Dr. William F. Sharpe.”

Baker & McKenzie LLP and K&L Gates LLP served as Edelman’s counsel in connection with the transaction. Ballard Spahr LLP served as PRW’s counsel.

«