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
Related Moves
Skip Schweiss exit from TD Ameritrade means the RIA custody business lost its most visible corporate-paid advocate -- for the moment
TD's now ex-managing director of advisor advocacy is set to become the FPA president, but most peers agree the 58-year-old is poised to 'write his ticket' with another custodian or national RIA
August 5, 2020 at 9:33 PM
Apex nabs Jon Patullo from 'Schwabitrade' to 'raise the bar' and make his new firm's RIA system as 'frictionless' as the old one
The loved and admired TD Ameritrade software chief will bring his playbook -- and possibly Schwab's -- to Apex, which continues to try putting a winning front-end on its old Penson backend, a source says
October 11, 2022 at 12:40 AM
Robinhood gets 'brilliant' upper manager -- and a spare CEO -- by nabbing TD Ameritrade's ex-thinkorswim top exec, hopefully to throw a lifesaver to Robinhood's sinking stock
The Menlo Park, Calif., firm nabbed Steve Quirk as first-ever chief brokerage officer to 'bridge the gap between academia and reality.'
January 6, 2022 at 10:33 PM
Oisín's snippets: Charles Schwab brand goes up on Omaha's TD Ameritrade stadium, home of college baseball world series • Interactive Brokers lands an RIA custody insider, Charlie Latimer, to climb the custodian ladder
The TDA brand lives on until the techies figure out how to make two systems into one, but change is in the air in Omaha, while Interactive Brokers gets a leg up in the custody business with a new hire.
December 27, 2021 at 9:58 PM
See more related moves
TD Ameritrade
Asset Custodian
Top Executive: Tom Nally
Elmer Rich III
A couple of opinions:
- 401k plans have been excluded from the core disclosure rules of ERISA for long enough. Maybe that was necessary for them to get established, but no longer. If it’s any sort of material benefit — it has to be disclosed. Period.
- Likely, because there has been so much hype, and hype is a reliable contra-indicator of reality/importance, the whole fee matter is likely going to end up the Y2K non-event of our industry.
Stephen Winks
Borzi is not saying brokers are accountable and responsible for self directed accounts, just that the consumers who direct their accounts should know how well or poorly they are doing.
This is pro-advisor as it encourages professional management provided by the advisor, not possible for the broker because the industry maintains that brokers do not render advice. This accentuates the accountability and responsibility of the advisor, which is undeniably fiduciary standing.
The push back is that (a) brokers are not accountable or responsible and by requiring reporting on self directed accounts, the technological capability to make brokers accountable and responsible will be put into place and (b) the self directed consumer will discover how adept brokers are at constructing and managing portfolios.
How is this not in the consumers best interest and the responsibility of the broker in retirement accounts?
SCW
Darwin Abrahamson
I agree with Elmer and Steve that SDBAs are not good for participants or for the fiduciaries. The future for successful 401(k) plans is 3(38) investment managers that design and manage models for participants.
Brooke Southall
I hear you Steve, Darwin and Elmer.
But I also know that as a 401k participant in two former jobs I much preferred the SBDA to the short little menu of funds offered by my employers.
So I’m not quite sure what to make of this.
Of course any plan would likely be better than the lack of one they offer here at RIABiz.
Brooke
Darwin Abrahamson
Brooke I understand what you are saying about you former plan. Sorry to say that is the problem with the majority of plans not just a short list but an expense list.
Darwin
Frederick Van Den Abbeel
Definitely it appears can murky up the 401k waters with the promotion of self-directed 401(k) brokerage. Perhaps the Schwab, TD, Fidelity (and other direct retail custody providers) TV commercials may have given consumers the impression their technology advice offering means hiring an investment advisor isn’t needed in this day and age.
After all, a consumer just has the follow the “green line” towards achieving their own success.
Mark Nolan
By having self-directed 401k or Solo 401k feature you can be your own trustee. Some Solo 401k providers or administrators will provide the applicable tax reporting support (e.g, filing of form 5500-EZ). http://www.mysolo401k.blogspot.com/2012/05/what-is-solo-401k-commonly-called.html
