https://www.barrons.com/advisor/article ... eid=yhoof2
Later this week, advisors handling retirement portfolios will face new requirements to ensure that the advice they are providing is in their clients’ best interest...
“The DOL requires specific considerations when making rollover recommendations, and it also requires a written disclosure to the client outlining why the recommendation was in the best interest of the client,” Ed Wegener, managing director of governance, risk, and compliance at Oyster Consulting, wrote in a blog post explaining the new requirements.
With the rollover rule that takes effect this week, advisors will have to document an analysis that includes alternatives to the rollover, fees and expenses associated with the employer plan and the IRA, whether the employer pays any share of administrative expenses, and the various levels of services and investments available through the plan and the IRA...
The comparative analysis with a client’s employer plan will be a heavy lift, according to Wegener...
Advisors relying on that exemption are eligible for commissions, 12b-1 fees, and other forms of compensation that would otherwise be prohibited. But to enjoy that safe harbor, they must adhere to the new set of regulatory requirements.
That includes abiding by the DOL’s Impartial Conduct Standards, issuing a formal, written affirmation of an advisor’s fiduciary status under Erisa, and providing clients with written disclosures about conflicts of interest, according to a compliance guide issued by the DOL.
The Impartial Conduct Standards include an obligation to make recommendations in a client’s best interest, charge reasonable fees, and avoid misleading statements when providing advice.
https://www.barrons.com/advisor/article ... eid=yhoof2