Lisa Shidler

I agree that the Improving Investment Advice for Workers &amp; Retirees is a little scary at first, but let's review the disclosure requirements. 1) Acknowledge in writing that you (RIA) are a fiduciary. This should already be in your Investment Advisory Agreement. 2) Written description of the services to be provided. Your firm may have a list of these services already, but if not, simply put a list together. One page, perhaps two max. 3) Document the specific reasons for the rollover recommendation. Easily create another one page form listing the specific reasons. (i.e., does not like investment choices, dislikes former firm,  wants ongoing investment and financial planning advice, other RIA firm offerings not available in the 401k and etc.

That's it for disclosures. Now the bigger issue is the Policies and Procedures incorporating this exemption rule. The Retrospective Review is easy.

Capitalize sees opening to serve RIAs with 401(k) rollover services on heels of DOL fiduciary rule and scores $12.5M from VC firms to make it happen

RIAs

401(k)

Capitalize

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 DOL all but outlawing RIAs from advising investors from rolling pension assets to IRAs,  New York startup that specializes in the hand-off steps into the breach for RIAs.

Capitalize sees opening to serve RIAs with 401(k) rollover services on heels of DOL fiduciary rule and scores $12.5M from VC firms to make it happen

Richard M. Allison

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