Under ERISA and parallel IRS regulations, Robos serving clients with ERISA plans (401(k)s) and/or IRAs are operating outside the law, unless they comply with an exemption...

A most important success factor is understanding client motivations and responding appropriately. This concept applies generally but even more so to fiduciaries who have the added obligation of acting in their client’s best interest.

Being on the same page means speaking the same language, understanding the priorities and having the skills necessary to respond effectively. This was the motivation behind the DALBAR Fiduciary Checklist....

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After the shock and awe of Donald Trump’s election, the most pressing question for those of us who are racing to comply with the April applicability date is, “What will a President Trump do to the rule?”

We are faced with massive changes and an ominously close deadline. Is there relief in sight?...

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The Fiduciary Rule gives big breaks to Level Fee Fiduciaries. Level Fee Fiduciaries need comply with eight regulations, compared to thirty two for advisors subject to the full BICE. Additionally Level Fee Fiduciaries can advise clients on rollovers.

It is not surprising that many major firms are willing to forfeit commissions for the treasured Level Fee status...

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Under ERISA and parallel IRS regulations, Robos serving clients with ERISA plans (401(k)s) and/or IRAs are operating outside the law, unless they comply with an exemption...

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There are four primary exemptions to the DoL Fiduciary rule covering its six categories of advice. Each advice category may have a best-fit exemption, so is it possible to use one exemption for one category of advice and a different one for another?...

Regulations call for reasonableness of fees but while the term may seem vague, there is a very specific standard that has been affirmed by the Supreme Court. Reliance on this standard is the best possible compliance and protection from excessive fee litigation and regulatory action...

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While there is no choice about the Fiduciary Rule that makes hundreds of thousands of advisors into fiduciaries, the Best Interest Contract Exemption (“BICE”) is a choice.

Many interpret BICE as a mandate that must be followed but the Department of Labor says the opposite! BICE is one alternative, and a burdensome one that caries the exposure to innumerable contract claims...

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While not explicitly stated the many requirements of recommendations can only be accomplished through a separate well-designed permanent communication. Verbal recommendations are simply not feasible and are fraught with risk. Litigation is expected to focus on failure to comply with the requirements for making recommendations.

In the first place, BICE holds the advisor responsible for the recommendation. Unlike securities regulations, BICE is only concerned with the advice that is given, NOT whether the advice was taken and a trade executed! The recommendation becomes the “confirm” of the advice.

Have you developed a budget for BICE?

In preparing a BICE budget template DALBAR found thirteen separate activities that the typical advisory firm will have to perform. Each of these activities were examined for the immediate and future effect in three major areas… Resources, Revenue Loss and Strategic Position....

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If you are considering the BIC exemption you should consider that this means a filing with the DoL of your intent. Your firm becomes part of a list of possible BICE violators that anyone can demand under Federal Regulations (FOIA). With all the complexities and the rushed implementation there could be any number of violations that a diligent plaintiff’s attorney could uncover

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A Best Interest Contract in the hands of every client that has a retirement account is an enormous exposure if the market should take a dive. Insuring against this risk will become an essential part of doing business and the premiums for this coverage can be expected to escalate...