Articles tagged "DOL"


Ron Rhoades: Any 'complexity' ... is the direct result of their own appeal to the DOL to adapt the fiduciary principle to the conflicted compensation practices of the B-Ds and insurance companies.

The short scoop on Wall Street's claim that the DOL rule is too long
The core of the Labor Dept's rule is 237 words; blame the prolix portion on exemptions accorded to complainers' interests

Tuesday 7.19.16
Kathleen McBride: [Non fiduciaries] want to be able to check off the box and in so doing find ways to work around the rule.

DOL rule still has feet tangled in the struggle to define difference between 'suitability' and 'fiduciary'
Fiduciares keep flunking a definition of useful accountability and the giant brokerage lobby keeps exploiting its 'F'

Monday 6.27.16
Lou Harvey: One of the ways to attack the reasonableness of the regulation is to allege that it is 'arbitrary and capricious,' which the complaint does repeatedly.

Why SIFMA & Co.'s trip to a friendly North Texas court to upend the DOL rule looks more like its Alamo
Little credence is being afforded anti-DOL rule crowd that is trying to flip the script on who is screwing whom

Monday 6.6.16
Peter Swisher: The DOL's authority is limited to ERISA plans. The IRS retains control of enforcement. The DOL therefore gets to write the rules for IRAs though they have no power to enforce them.

How the DOL brought the IRS wolf to the RIA door with its 'rule' -- think IRAs
The Internal Revenue Service was always the IRA cop for individuals but now advisors may answer to the tax man

Friday 5.13.16
Phyllis Borzi: Invesco Trust stepped up to the plate.

DOL glows and Invesco glowers over $10 million settlement of alleged ERISA infraction
Labor Department's Phyllis Borzi praises Invesco Trust Company for 'stepping up' but the Atlanta fund company says it did nothing wrong and was merely extracting itself from DOL overreach

Tuesday 5.3.16
Don Trone: 'Acting in the best interests of others' is a principle. It only takes seven words .... The DOL uses 1,000 pages of rules to kill the concept.

Don Trone's 7 reasons why the DOL rule is flawed to the point of 'folly'
Hurling jabs at opponents and proponents alike, the fiduciary maven says both sides failed to recognize and incorporate the role of RIAs

Friday 4.15.16
Irwin Stein: Those crickets you heard from those quarters in the wake of the DOL rule's publication constituted stifled jubilation.

A veteran of securities law killed his weekend reading all 1,000 pages of the DOL rule -- and has a takeaway to share
Despite reassuring words, the rules steer ill-done-by investors down that dark alley of FINRA arbitrations where complaints go to die

Wednesday 4.13.16
Knut Rostad: Phyllis Borzi moved heaven and earth with the tools she had and I think we let her down. I think we were too polite.

How Wall Street emasculated the DOL rule with an old-fashioned end game: 'Somebody made a deal' -- and why tort lawyers are licking their chops
End-game style politics exposed fiduciaries' lack of playoff experience, but RIAs can console themselves because DOL exposed shady dealings on 'the dark side'

Thursday 4.7.16
Thomas Perez: We don't believe it's necessary for an employee of MetLife to have an obligation to advise a client about the products that New York Life is selling.

The DOL's final rule contains a litany of 11th hour concessions to brokers that show Wall Street lobbyists earned their keep
12(b)1 fees, variable annuities and proprietary products are all still allowed and so is partiality in the sales process

Wednesday 4.6.16
Mark Casady: That is an extreme. I don't see that happening, but that is kind of the range of the thinking.

LPL CEO floats orphaning 3% of its brokerage business in prelude to DOL 'travesty'
Mark Casady says he may lop off brokerage accounts of $15,000, citing looming rule changes

Friday 10.30.15
Ken Fisher finally found the 401(k) business to his liking after Ascensus sliced costs and proprietary funds enabled fat profits.

Capitalizing on 'unintended consequences' of DOL changes, Ken Fisher pounces on a fat-margin 401(k) opportunity
DOL greased the skids for closed-architecture approach of $60-billion RIA -- as long as it is discloses use of proprietary funds and sets flat fees that apply to them

Thursday 10.15.15
Bing Waldert: They can go to the guy they trust and just use that person.

Report: 'Brother-in-law' dabblers are giving 401(k) ground slowly to specialists in $1.3 trillion market
Some RIAs disagree with Cerulli's pessimism and say DOL is having its effect with small employers seeking real experts to provide 401(k)s to employees

Thursday 9.17.15
Dan Arnold: We want to hit this head on and deliver a complementary robo-solution.

LPL will launch third-party robo for advisors and eliminate some fees
Dan Arnold laid it on the line: LPL is being disrupted but taking the challenges head-on

Monday 7.27.15
Marcia Wagner: I don't want obnoxious crap like that in my contract.

Why exactly DOL's latest action is so shocking to so many brokers -- and even ERISA lawyers -- despite years of warnings
Brokers managing IRA assets never imagined they'd need to make a written promise to do right by investors

Monday 4.20.15
Mark Casady has a new beard but his firm's views on fiduciary rules may differ from FSI by more than a whisker.

LPL reconsiders FSI as it drops out of its board, offers own DOL stand and hires own lobbyist
The giant IBD-custodian breaks from Financial Services Institute pack with pro-DOL statement as FSI posts more negative view on Labor Dept.'s 'fiduciary' definition

Thursday 4.16.15
Don Trone: The individuals I am critical of are the members of fiduciary advocacy groups who have turned a blind eye to unethical, and in some cases, illegal behavior.

Where Barbara Roper and Ron Rhoades lose traction in their fiduciary arguments
Lay fiduciary decision-makers have difficulty in discerning conflicts of interest.

Monday 3.2.15
Don Trone: Fiduciary is no longer a point of inspiration for moral, ethical and prudent decision-making.

Why Obama and the DOL are all wet when it comes to the proposed fiduciary rule
Stress the carrot and not the stick in formulating a rule that will get real results, says a fiduciary maven

Thursday 2.26.15
Lou Harvey: It does mean that annuity sales will no longer be a 'caveat emptor' type of transaction.

'Paradigm shift' in 401(k) flows opens the DOL door for annuities in 401(k) plans and RIAs are split
In the wake of DOL and Treasury rulings, some fiduciaries, certainly not all, seem willing to give the oft-reviled instruments a chance

Tuesday 10.28.14
Jacob Adamczyk: Some of them are filled with conflict because they are stuffed full of proprietary funds selected by the fund company -- if the underlying investments can be determined at all.

Why I use target date funds for some 401(k) clients in my RIA but with exaggerated scrutiny and care
The set-and-forget products have enormous potential for good but may also be a fiduciary nightmare

Friday 3.21.14
Christopher Holtby: In essence, the client is creating a pension plan for future beneficiaries and advisors retain their advisory role for years to come.

The trusteed IRA: One tested method to maintain assets under management through the generations
A probate attorney, a trust exec and a Harvard B-school student float a solution to persuade family members to stay the course

Friday 1.10.14
Jack Waymire: Advisors still have to win to make money. Most advisors do what it takes to win.

Why a reputation of shadiness persists in the financial advisory industry
Quite literally the truth never sees the full light of day -- and clients and quality advisors pay a price for it

Monday 9.30.13
Jeffrey Turner: I'd say it's a victory for Labor and its regs.

DOL credits itself for notable evolution in the 401(k) industry -- not without criticism
The sharks are circling after the Ayres letters caused a furor but one industry leaders says Labor's bureaucrats get a C-minus

Monday 9.9.13
Ron Rhoades: Here is the rub: the plan sponsor has great difficulty holding the "retirement plan consultant" to account, given the low standard of conduct applicable to measure the potential liability of a non-fiduciary consultant.

Legal analysis: Why the Yale 401(k) letters, limits aside, should raise an alarm to plan sponsors
Ayres may not have it all letter perfect but his basic points have a legal basis

Monday 8.19.13
Ron Rhoades:  The broker-dealer, and its financial advisors, received way more compensation than the 0.85% annual amount they stated to Janet.

An X-ray of one affluent, educated and sophisticated investor's portfolio shows how it was chewed up by fees
Helping an ex-Fortune 500 retiree prepare for her appearance before Congress, the author waded through a mountain of paper only to discover that the woman was likely to outlive her portfolio

Monday 8.12.13
Brendan Little: Litigation serves as an important deterrent by identifying and penalizing those service providers that are responsible for the egregious fees.

An attorney explains where the 'trail goes cold' in PBS' 'Retirement Gamble'
Just where the line is between a legal and illegal 401(k) plan is important to know

Tuesday 5.21.13
Scott Pritchard: Wall Street lawyers had plenty of time between 2007 and last July to create slight-of-hand ways to "disclose" these fees without providing meaningful transparency.

Why 408(b)(2) is a flop for the 401(k) business and how RIAs can turn it around
The disclosure requirement sat around so long that workarounds got developed and employers got comfortable in the boiling water

Wednesday 4.10.13
Knut Rostad: One unfamiliar with the nuanced differences in play may well ask, 'What, again, is wrong with being suitable?'

Op-Ed: The fiduciary standard is in worse shape than it was four years ago
The teachable moment of Lehman's collapse seems to have dissipated, and forces of dissimilation are winning the day

Friday 1.11.13
Readers most 'liked' a May story that featured an enigmatically unpeopled office (think IPO cash) and some old fashioned gumshoe reportage.

RIABiz' 10 most-read stories of 2012: What fascinated you and why
Facebook, fallout from DOL's new 401(k) regs and happenings at Advizent, Addepar and Windhaven were reader catalysts

Wednesday 12.26.12
Tom Gonnella: It makes no sense to place the burden on individuals to figure out how much their nest egg is costing them.

Obfuscation Nation: 401(k) fee disclosure laws still don't give the true cost of plans and may well cause more agita for would-be retirees
The new DOL rules are far from ideal but may give fee-based advisors an edge in the small-plan market

Tuesday 8.28.12
David Witz: It could be fireworks for the RIA community or just another compliance fizzle.

A 401(k) plan dethroning deferred: The DOL-mandated disclosures may not set any legacy palaces on fire near-term
The expected RIA field day and B-D comeuppance may come limping out of the gate; Fidelity has put 17 million 401(k) disclosures in the mail with few follks batting an eye -- with high-balance participants as the possible big exception

Tuesday 8.28.12
Ron Rhoades: I’ve put a big target on my back.

Before taking a self-imposed vow of silence, Ron Rhoades sounds off on the RIA industry and tells what's it's like to hit a professional wall
The outspoken NAPFA chairman-who-wasn't covers why the Bachus bill will rise again, the true fix for RIA exams and why the term 'fee-based' is inherently 'fraudulent'

Monday 8.27.12
Phil Chiricotti: The DOL went off the reservation...They backed off and damaged their credibility.

What to make of DOL's backtrack after John Kerry, Fidelity Investments and the rest of the riled 401(k) industry cried foul
The policy reversal on on self-directed accounts is a win for white-collar workers but the agency's mandating-by-bulletin was equally troubling to some observers

Wednesday 8.1.12
 Phil Chiricotti: It's a needless requirement that just can't be met.

New DOL rule effectively kills off open-architecture option favored by some big plan participants -- and sets off the 401(k) industry
The wrinkle aimed at self-directed accounts is seen as an unnecessary eleventh hour blindsiding by Fidelity, TD and the CFDD among a broad constituency

Wednesday 6.20.12
Lou Harvey: The rules on the participant side are a joke.

After years of DOL bluster, new 401(k) rules appear to make RIAs' low expenses look higher than those of brokers
It's the same old problem of mutual fund-paid fees arriving by tunnel and therefore getting a pass in disclosures; DOL no-comments the issue

Monday 6.18.12
Susan John: If no one is willing to advise the consumer of the $25K IRA, that’s a problem.

NAPFA's John responds to critic questioning her group's stance on compensation in light of new DOL rules
The national chair says the first objective is not to scare small investors away

Tuesday 4.3.12
Michael Henkel: He is passionate about moving independent advisors into the retirement plan market, but says that for now, advisors lack the tools to succeed there.

Yesterday's proposed DOL regs underscore why default investments are the 401(k) market's giant untapped opportunity
Regulators' so-far soft approach on target date funds leaves door open for advisors to compete

Tuesday 11.30.10
U.S. Rep. George Miller is one of a number of Washington, D.C.-dwellers paying more attention to hidden fees in 401(k) plans.

One down, two to go: Trio of important DOL regs reshapes 401(k) advice business
Plan fiduciaries may face an easier world -- if their disclosures don't come back to bite them

Tuesday 7.20.10
Lou Harvey: The bigger impact is on IRAs, not 401ks. There are a heck of a lot more IRAs out there and advisers involved in IRAs.

IRA assets could be ripped from the grasp of brokers if DOL has its way
With brokers disqualified, fee-only advisors may have 'phenomenal' opportunity to dominate $4.1 trillion IRA market

Thursday 3.4.10

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