Displaying items by tag: DoL

Wednesday, 08 December 2021 22:17

Biden's Big Addition to the New Fiduciary Rule

Sweeping changes to the financial regulatory landscape are coming quickly. Stemming from changes to the interpretation of a Trump-age exemption are widening the regulatory umbrella. The U.S. The Labor Department is pushing a variety of accounts including annuities to be included in this expansion. Hidden and/or lofty fees in these areas are the source of the concern and lawmakers want the ‘best interests’ of investors in mind. Many companies are sprinting to align themselves with the regulation. Complying will include recordkeeping requirements, new policies and procedures, and new disclosures.


FINSUM: The drastic changes to regulation will really start to come in at the start of the year, and could monumentally alter the annuities market.

Published in Wealth Management
Monday, 29 November 2021 19:29

An Obama-like Fiduciary Rule Arriving Soon

According to the leading regulatory lawyers in our industry, advisors are about to get hit with a doozy. Faegre Drinker Biddle & Reath say that the DOL is planning to release a new fiduciary rule this spring. Since the new version of the rule is being drafted and put forth under the Biden DOL, it is widely agreed that this newest version will look much like the Obama-era rule that got thrown out by the courts. According to Fred Reish, a partner at the firm, “There will be provisions of 2020-02 that'll be moved over to it. Probably the fiduciary acknowledgement, the best interest standard and maybe specific disclosures of reasonable compensation limitation. It'll look a lot more like a fiduciary type rule than it does right now."


FINSUM: This new rule has been widely signaled but we have never had a good fix on timing, but is now becoming clear. Take note.

Published in Wealth Management
Tuesday, 26 October 2021 20:22

The DOL is Delaying the Fiduciary Rule

The DOL took a very important and surprising step today. Many advisors and the industry more generally has been calling for the DOL to delay their implementation of the Fiduciary Rule, and somewhat amazingly, that is exactly what the agency just did. Referring specifically to the rule that was passed in the final few weeks of the Trump administration, the DOL is delaying implementation until the end of January 2022. Further, it will not enforce several parts of the rule, including the rollover aspect, until June 2022.


FINSUM: So the month extension isn’t that big, but will give some firms more time to get their matters in order. The bigger question is when the new Biden era DOL rule be implemented.

Published in Wealth Management
Friday, 08 October 2021 21:09

DOL Readies Major Expansion of Fiduciary Rule

(Washington)

Joe Biden has picked Lisa Gomez to head the Employee Benefits Security Administration at the Department of Labor. And speaking to senators this week, she made a comment which clearly signals the direction of the Department. She said “there’s nothing that is more central to ERISA than defining who is a fiduciary”. Speaking about her pending work for the DOL, she said she plans “to be briefed on the efforts of looking at the definition of a fiduciary in different contexts, and taking another look at the conflict of interest rule and how it would apply in different situations”. She continued “Determining exactly who is a fiduciary in different contexts … has been the source of disagreement and it’s been a long road to get there”.


FINSUM: The writing is on the wall at the DOL and SEC. The Biden administration is starting to flex its muscle and will beef up regulation.

Published in Wealth Management
Thursday, 16 September 2021 19:51

Reg BI May Be About to Hammer This Stock

(New York)

For the most part, regulatory risk is understood well before it becomes a reality. There is a lot of uncertainty around the final rule, but generally you can prepare long in advance. That said, Reg BI may be about to cause a big problem in publicly traded markets. In particular, there is increasing speculation that Reg BI may soon be applied to everyone’s favorite darling (or the opposite), Robinhood (HOOD). The company has been under intense scrutiny for most of this year for its monetization strategies as well as its gamification of trading.


FINSUM: And this would not just be limited to Robinhood but all online trading platforms. This could lead to some significant volatility.

Published in Eq: Financials
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