The appellee, Market Synergy Group, argued unsuccessfully that its representatives would never be able to make the Best Interest Contract Exemption, a key mechanism underlying the new DOL fiduciary rule, workable.
The firm says it does not have additional information to share at this juncture beyond what has been noted in a 2017 year-end SEC filing; in that newly emerged document, Wells Fargo Advisors says it has begun an internal investigation into “whether there have been inappropriate referrals or recommendations” made by its advisors, including with respect to rollovers for 401(k) plan participants.
The regulator is reassessing its requirements for RIAs to monitor the outside business activities of their reps; one experts argues it is likely that, if the final rule reflects the proposed rule, many plan advisers who serve plans through an independent RIA (as opposed to the broker/dealer’s “corporate” RIA) will seek to renegotiate their compensation arrangements relating to their independent RIA revenue.
In a dense dismissal decision, the district court offers a reminder of the exacting pleading standards of ERISA and statues of limitations before roundly rejecting the plaintiff's allegations for failing to state an actionable claim.
From a rapidly evolving recordkeeping provider landscape to
a potential wholesale rewrite of the tax treatment of retirement assets,
today’s environment puts advisers and their clients in a constant
state of flux.
The Department of Labor has enacted a number of initiatives
in the last decade to increase retirement plan fee and pricing transparency, but participant
awareness of what and how they pay continues to lag.
The Trump administration is nearly set to formally implement
its delay of the Obama-era DOL fiduciary rule, set to take effect in just two weeks, aimed at curbing conflicts of
interest in the advisory and investment industries.
Serving governmental retirement plans is viewed as
attractive by many providers, simply due to the sheer size and stability of the
clientele, but one ERISA attorney warns there may be unexpected risk that comes
along with such arrangements.