FINRA’s continued focus on account recommendations and rollovers is evident in its 2025 FINRA Annual Regulatory Oversight Report (the Report), Based on the Report, broker-dealers and their registered representatives...more
4/11/2025
/ Broker-Dealer ,
Disclosure Requirements ,
Fees ,
Financial Industry Regulatory Authority (FINRA) ,
Investment ,
Investors ,
IRA Rollovers ,
Regulation BI ,
Regulatory Oversight ,
Retirement Plan ,
Securities Regulation
Key Takeaways
- FINRA’s 2025 Annual Regulatory Oversight Report 2025-annual-regulatory-oversight-report.pdf included a focus on issues related to retirees and senior investors.
- The Report provides guidance to...more
3/24/2025
/ Broker-Dealer ,
Elder Abuse ,
Financial Institutions ,
Financial Services Industry ,
Individual Retirement Account (IRA) ,
Investment Adviser ,
Investors ,
IRA Rollovers ,
Regulation BI ,
Regulatory Agenda ,
Regulatory Requirements ,
Retirement Plan ,
Securities and Exchange Commission (SEC) ,
Securities Regulation
Among other things, FINRA is focusing on services and recommendations by broker-dealers and their registered representatives to retirees, senior investors and investors with diminished capacity.
The Report has one part...more
2/11/2025
/ Broker-Dealer ,
Department of Labor (DOL) ,
Diminished Capacity ,
Enforcement ,
Fiduciary Duty ,
Financial Industry Regulatory Authority (FINRA) ,
Individual Retirement Account (IRA) ,
Investment Adviser ,
Investor Protection ,
IRA Rollovers ,
Registered Investment Advisors ,
Regulation Best Interest ,
Regulatory Agenda ,
Retirement ,
Retirement Plan ,
Securities Regulation ,
Senior Investors
As explained in my last post, Things I Worry About (7), the DOL’s EBSA has a number of programs that can restore benefits to plans and participants. Those include:
- Civil investigations.
- Criminal investigations.
-...more
2/4/2025
/ 401k ,
Benefit Plan Sponsors ,
Department of Labor (DOL) ,
Disclosure Requirements ,
EBSA ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Employer Liability Issues ,
Fiduciary Duty ,
Investigations ,
Missing Plan Participants ,
Retirement Plan
The DOL’s EBSA has a number of programs that can restore benefits to plans and participants. Those include:
- Civil investigations.
- Criminal investigations.
- Informal compliant resolutions.
- Correction...more
1/29/2025
/ 401k ,
Benefit Plan Sponsors ,
Compliance ,
Cybersecurity ,
Department of Labor (DOL) ,
EBSA ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Enforcement Actions ,
Fiduciary Duty ,
Investigations ,
Investment Adviser ,
Retirement Plan
SECURE 2.0 was enacted on December 29, 2022. Among its provisions is a requirement that “new” 401(k) plans and private sector 403(b) plans must automatically enroll their eligible employees, but not until the first plan year...more
1/16/2025
/ 401k ,
403(b) Plans ,
Automatic Enrollment ,
Compliance ,
Employee Benefits ,
Employees ,
Employer Liability Issues ,
Internal Revenue Code (IRC) ,
IRS ,
PEP ,
Proposed Regulation ,
Retirement Plan ,
SECURE Act
The SECURE Act (“SECURE 1.0”) included a provision that required sponsors of 401(k) plans to include their long-term, part-time, or LTPT, employees in their plans for purposes of deferring part of their compensation into the...more
The SEC’s Division of Examinations issued its 2025 Exam Priorities a few months ago. 2025-exam-priorities.pdf Many articles have been written about those priorities, but none—at least that I have seen—have addressed the focus...more
SECURE 2.0 was enacted on December 29, 2022. Among its provisions is a requirement that “new” 401(k) plans and private sector 403(b) plans must automatically enroll their eligible employees, but not until the first plan year...more
SECURE 2.0 was enacted on December 29, 2022. Among its provisions is a requirement that “new” 401(k) plans and private sector 403(b) plans must automatically enroll their eligible employees, but not until the first plan year...more
SECURE Act 2.0 was enacted on December 29, 2022. Among its provisions is a requirement that “new” 401(k) plans and private sector 403(b) plans must automatically enroll their eligible employees, but not until the first plan...more
This starts a new series of blog posts…Things I Worry About. I will number these, but they will be more episodic than sequential.
SECURE Act 2.0 was enacted on December 29, 2022. Among its provisions is a requirement that...more
10/28/2024
/ 401k ,
403(b) Plans ,
Automatic Enrollment ,
Benefit Plan Sponsors ,
Disqualification ,
Eligibility ,
Employees ,
Employer Liability Issues ,
Investment Adviser ,
Retirement Plan ,
SECURE Act
As I explained in my last post, Fiduciary Rule 51, I have been asked whether the Supreme Court’s decision in Loper Bright Enterprises et al. v. Raimondo, Secretary of Commerce et al. could affect the outcome of the litigation...more
10/18/2024
/ 401k ,
Annuities ,
Chevron Deference ,
Department of Labor (DOL) ,
Employee Retirement Income Security Act (ERISA) ,
Exemptions ,
Fiduciary Duty ,
Fiduciary Rule ,
Individual Retirement Account (IRA) ,
Loper Bright Enterprises v Raimondo ,
PTE 84-24 ,
PTEs ,
Regulation BI ,
SCOTUS ,
Statutory Authority
I have been asked whether the Supreme Court’s decision in Loper Bright Enterprises et al. v. Raimondo, Secretary of Commerce et al. could affect the outcome of the litigation about the validity of the DOL’s fiduciary...more
If you study the rules of the various standard-setters, a pattern emerges about their expectations for the process for developing a best interest recommendation. The DOL and SEC are consistent in that regard, while the NAIC...more
The stay of the effective dates of the amended fiduciary regulation and amended exemptions means that the “old” DOL fiduciary regulation (the 5-part test) and the existing exemptions continue in effect indefinitely....more
9/30/2024
/ Broker-Dealer ,
Department of Labor (DOL) ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Fiduciary Duty ,
Fiduciary Rule ,
Investment Adviser ,
NAIC ,
Regulation Best Interest ,
Regulatory Reform ,
Retirement Plan ,
Securities and Exchange Commission (SEC)
The stay of the effective dates of the amended fiduciary regulation and amended exemptions means that the “old” DOL fiduciary regulation (the 5-part test) and the existing exemptions continue in effect indefinitely....more
9/17/2024
/ Department of Labor (DOL) ,
Employee Retirement Income Security Act (ERISA) ,
Fiduciary Duty ,
Fiduciary Rule ,
Individual Retirement Account (IRA) ,
Investment Adviser ,
NAIC ,
PTEs ,
Regulation Best Interest ,
Regulation BI ,
Retirement Plan ,
Securities and Exchange Commission (SEC)
The effective date of the DOL’s new expansive fiduciary rule and the amendments to Prohibited Transaction Exemption (PTE) 2020-02 has been stayed pending the outcome of the lawsuits challenging the rule and the amended PTE....more
9/12/2024
/ Broker-Dealer ,
Department of Labor (DOL) ,
Employee Retirement Income Security Act (ERISA) ,
Fiduciary Duty ,
Fiduciary Rule ,
Individual Retirement Account (IRA) ,
Investment Adviser ,
IRA Rollovers ,
Prohibited Transactions ,
PTEs ,
Regulatory Agenda ,
Regulatory Requirements ,
Retirement Plan
The stay of the effective dates of the amended fiduciary regulation and amended exemptions means that the “old” DOL fiduciary regulation (the 5-part test) and the existing exemptions continue in effect indefinitely. As a...more
9/9/2024
/ Broker-Dealer ,
Department of Labor (DOL) ,
Employee Retirement Income Security Act (ERISA) ,
Fiduciary Rule ,
Individual Retirement Account (IRA) ,
Investment Adviser ,
NAIC ,
Regulation Best Interest ,
Regulation BI ,
Retirement Plan ,
Securities and Exchange Commission (SEC)
The stay of the effective dates of the amended fiduciary regulation and amended exemptions means that the “old” DOL fiduciary regulation (the 5-part test) and the existing exemptions continue in effect indefinitely. As a...more
The stay of the effective dates of the amended fiduciary regulation and amended exemptions means that the “old” fiduciary regulation (the 5-part test) and the amended exemptions continue in effect indefinitely. As a result,...more
8/27/2024
/ Annuities ,
Best Interest Standard ,
Department of Labor (DOL) ,
Employee Retirement Income Security Act (ERISA) ,
Fiduciary Rule ,
Individual Retirement Account (IRA) ,
Insurance Industry ,
Investment ,
Investment Adviser ,
IRA Rollovers ,
NAIC ,
New Regulations ,
PTEs ,
Retirement Plan ,
Securities and Exchange Commission (SEC)
The DOL’s fiduciary regulation was scheduled to become effective this September 23. The exemptions were scheduled to become partially effective this September 23 and fully effective September 23, 2025....more
8/19/2024
/ Best Interest Standard ,
Broker-Dealer ,
Department of Labor (DOL) ,
Exemptions ,
Fiduciary Rule ,
Individual Retirement Account (IRA) ,
Investment Adviser ,
Investment Management ,
IRA Rollovers ,
Prohibited Transactions ,
PTEs ,
Regulation Best Interest ,
Securities and Exchange Commission (SEC)
The DOL’s fiduciary regulation was scheduled to become effective this September 23. The exemptions were scheduled to become partially effective this September 23 and fully effective September 23, 2025....more
Two recent Texas court decisions stayed the fast-approaching September 23, 2024, effective date of the DOL’s new fiduciary rule (including both the new regulation re-defining “fiduciary” investment advice and the related...more
The DOL’s fiduciary regulation was scheduled to become effective this September 23. The exemptions were scheduled to become partially effective this September 23 and fully effective September 23, 2025....more
8/6/2024
/ Annuities ,
Broker-Dealer ,
Department of Labor (DOL) ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Fiduciary Rule ,
Individual Retirement Account (IRA) ,
Investment Adviser ,
IRA Rollovers ,
Prohibited Transactions ,
PTE 84-24 ,
PTEs ,
Retirement Plan ,
Securities and Exchange Commission (SEC)