Happy Friday, readers. Over the past few weeks a clear theme has emerged among the many research reports and studies shared with PLANADVISER. It seems that financial services firms of all descriptions—banks, brokerages, recordkeepers—are focused on new ways to build client trust and measure the quality of the client experience. Collected below are some highlights that should offer helpful perspective for any DC advisory practices engaged in this critical effort.
New rules established by Congress and the IRS simplify the process for participants to request a hardship withdrawal of DC plan assets; some experts say this could increase “leakage,” while others anticipate more positive effects, such as lower debt among cash-strapped participants.
The number of Department of Labor investigations of financial advisers has steadily increased over the years; here is a primer on the DOL’s sources of authority, and what to expect when examiners come knocking.
ERISA attorneys and plan design consultants say they are hearing more questions from sponsors about using managed accounts as a plan’s default investment, but the most common use case remains opt-in managed accounts.