Inherent to acting in a client’s best interest is ensuring costs are reasonable, an ERISA concept brokers need to understand
Apr 11, 2016 @ 12:01 am | By Greg Iacurci | Investment News
What is “reasonable” compensation? It’s a question brokers may not have considered prior to the Labor Department’s recentpush to regulate investment advice in retirement accounts.
However, brokers need to start paying attention, because this seemingly simple question will have a big influence on the way they are able to do business in qualified retirement accounts going forward.
The Department of Labor on Wednesday issued its landmark “fiduciary” rule, which says intermediaries giving investment advice in accounts such as 401(k) plans and IRAs must adhere to a “fiduciary” standard as laid out under the Employee Retirement Income Security Act of 1974. Until now, brokers have been able to operate under a less-stringent “suitability” standard.
Best Due Diligence meeting in the industry. No sales pitches, senior level decision makers, meaningful discussions and the Broker Dealer networking sessions were especially useful. Thanks to Blue Vault for raising the bar!