Displaying items by tag: best interest

(New York)

If you listen to the industry chatter, it appears Gary Gensler, Biden’s head of the SEC, may be poised to define “best interest” as part of the SEC’s Regulation Best Interest. If advisors recall, when the BI rule was first proposed the main criticism was that they did not define the term “best interest”. Many thought this would allow loopholes, while the SEC said it would make enforcement stronger because by defining a term, it actually creates ways around it. According to Blaine Aikin, from Broadridge, “I think there’s an appetite for the Biden administration … We’ve had certain calls from many different audiences: ‘Wouldn’t it have been better if the SEC had actually defined best interest?”. Aikin added that he believes there is “huge collaboration” going on between the SEC and DOL on the topic of Reg BI and Fiduciary Rule synergy.


FINSUM: The big question here is whether a definition of the term will somehow change enforcement in some way. It seems a toss-up as to whether the definition creates loopholes or weakens them, but for the average advisor enforcement makes all the difference.

Published in Wealth Management
Monday, 28 June 2021 10:40

The DOL Moves to Expand Fiduciary Rule

(Washington)

Earlier this month the DOL took a major step. On June 11th, as part of its annual regulatory agenda, the DOL announced that it would be broadening the scope of its fiduciary rule. In particular, the DOL is planning to broaden the ERISA definition of who counts as a fiduciary under the rule, which would mean more advisors are covered. According to leading industry lawyer Josh Lichtenstein, “There are a lot of career people at the DOL still working there and it's not clear to me that their views would have necessarily changed just because of the 5th Circuit's action … So I am expecting to see a pretty fulsome rewrite of the definition of who is a fiduciary”.


FINSUM: That is a pretty substantial comment from Mr. Lichtenstein, and not one most advisors want to hear. Stay tuned.

Published in Wealth Management
Tuesday, 15 June 2021 17:26

The Return of the DOL Fiduciary Rule

(Washington)

Many in the financial and insurance industries were surprised that the Biden Admin didn’t scrap Trump's Department of Labor Fiduciary Rule…see the full story on our partner Magnifi’s site

Published in Wealth Management
Monday, 24 May 2021 17:39

Return to Original DOL May Be Imminent

(Washington)

Speculation is running rampant in the wealth management…see the full story on our partner's site

Published in Wealth Management
Thursday, 20 May 2021 08:00

Here is When a New Fiduciary Rule Will Hit

(Washington)

A new fiduciary rule has been in the back of all advisors’ minds for several months now. In February…see the full story on our partner Magnifi’s site

Published in Wealth Management
Page 4 of 31

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