Sara Hansard

“In order to advise clients on their IRA assets, brokers would have to register as investment advisors and act as fiduciaries.”

Rightly so. If an advisor is not going to accept fiduciary duty, perhaps they shouldn’t be in the business anyway. After serving clients as a fiduciary for more than 20 years, I think I’ve seen it all. While not every RIA always acts in the client’s best interest, unfortunately, at least the client has legal recourse. 

Dave

I am troubled by the power grab of the regulators because more regulations means more lawyer fees, more costs to comply, more ways to get into regulatory trouble, meanwhile, another Madoff will be scamming the world while the keystone cops at the SEC or DOL or FINRA stand by creating more rules for small business people. All of this is a conspiracy to harness more power in DC over our lives. Enough!

IRA assets could be ripped from the grasp of brokers if DOL has its way

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.

fiduciary

401(k)

DALBAR

Strategic Ethos

Department of Labor

Don Trone

Lou Harvey

The days when RIAs were the outsiders at the 401(k) party are fast coming to a close. What's new is that the mass of 401(k) assets 
is getting critical at about $3 trillion; fiduciary advisors are getting appreciated; fat fees and questionable kickbacks are getting exposed and stepping out of line is getting dicier as the Department of Labor tightens the regulatory screws.

The old reasons why the 401(k) business is attractive are still in place: there are fresh assets pouring in every month and when employees leave jobs or retire, they produce rollovers that build up IRA accounts for financial advisors. The drawbacks of getting into the 401(k) business are still in place, too. Dealing with retirement assets is really a second line of business and it remains -- unless you overcharge with hidden fees -- a low margin business with high potential fiduciary liabilities.

Still, the outsourcers, infrastructure and accumulated knowledge for RIAs to capitalize on is growing daily and a the mega-shift of assets away from brokers is making the 401(k) business riskier and riskier -- to ignore.

401(k) Stories

With brokers disqualified, fee-only advisors may have 'phenomenal' opportunity to dominate $4.1 trillion IRA market

IRA assets could be ripped from the grasp of brokers if DOL has its way

David Lucca

Joe Gordon

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