Guest Columnist Duane Thompson

The industry has 6 months to comply. After 70 years of denial, we can actually have a safe business environment in which advisors can work in the client’s best interest. Importantly, FINRA arbitration no longer holds b/ds harmless in managing client disputes on the basis that “brokers do not render advise” which requires the consumer to be their own counsel regardless how limited the consumer’s investment knowledge and experience may be. Brokers are now accountable for every investment recommendation they have ever made. This materially changes broker culture requiring attention to fiduciary duty and ongoing .counsel.

SCW Stephen Winks

Snakes and ladders: What to expect in the  unexpectedly triumphant final DOL fiduciary rule

Duane Thompson: Its harshest critics might compare the process to a giant anaconda that, having swallowed its prey, now lies motionless for several months as it slowly digests its meal. 

IMCA

ERISA

Phyllis Borzi

Duane Thompson

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

The past two years have been some of the most momentous in the relatively short history of the RIA profession. Legislators and regulators have been gradually embracing the fiduciary standard, though whether it will fully apply to everyone calling themselves advisors remains to be seen.

The Department of Labor’s crusade to lower costs and increase transparency in retirement plans means a spate of new regulations affecting advisors and brokers in that market. Dodd-Frank Financial Reform, meanwhile, continues to unroll across the profession, with the biggest change being a shift to state oversight of RIAs with less than $100 million AUM. In this section, you’ll find continually updated RIABiz.com coverage on all these topics.

RIA Compliance

Whether converted or just plain exhausted, the staunchest opponents are standing down to make way for the new rule that will go into effect in 2017

Snakes and ladders: What to expect in the unexpectedly triumphant final DOL fiduciary rule

Stephen Winks

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