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Association for Financial Professionals Comment Letter to SEC on Money Market Reform Proposals (PDF)

"We oppose the proposal to remove the amortized valuation of prime institutional funds, thereby subjecting these funds to a floating net asset value (NAV). Doing so reduces corporate investors' interest in utilizing MMFs as a cash management and investment tool.... An AFP survey of financial professionals found that 56% of organizations would be less willing to invest in floating NAV money market funds, resulting in reduction or even elimination of MMF holdings."

Financial Professionals and Clients Disagree on Key Retirement Planning Conversations

"A key component of a comprehensive and effective retirement plan includes estimating potential costs and risks in retirement, including those associated with health care and long-term care. Four in 10 FPs and consumers surveyed agree this is one of the most difficult aspects of retirement planning.... [W]hile most FPs say they are discussing these topics, less than half of consumers recall these discussions: 96% of FPs say they talk about physical health issues with clients, but only 44% of clients recall those conversations. 90% of FPs report discussing cognitive decline, yet just 31% of clients say the topic came up."

Lawsuit Filed to Challenge DOL Fiduciary Rule That Prevents Financial Professionals from Best Serving Retirement Savers

"The [DOL]'s new, 1,023-page rule ... creates sweeping changes to existing regulations that will make saving for retirement more difficult for the very same hardworking American families and individuals it claims to protect.... The rule will shackle Main Street financial advisors with extensive new requirements and constant liability, forcing them to limit the options and guidance they provide to retirement savers.... Advisors servicing small business plans will similarly be left with no choice but to limit or stop servicing the retirement plans offered by those job-creators, significantly reducing the retirement savings options available to their millions of employees. These consequences collectively reinforce that government officials failed to perform an adequate cost-benefit analysis during the rule's development."

For Employers: The Symbiosis Between Financial Professionals and TPAs

"Pending federal legislation that would make it possible for employers to join Open Multiple Employer Plans (MEPs) as [a] way to reduce the costs, administration and fiduciary responsibilities associated with sponsoring a retirement plan may make this symbiotic relationship even more important and prevalent.... So who brings what to the table? Where do the lines of demarcation between financial pros' and TPAs' duties, responsibilities and value start and end?"

Text of DOL Advisory Opinion 2025-02A: Whether a Long-Term Disability Program Sponsored by the California Association of Professional Firefighters Is an 'Employee Welfare Benefit Plan' Sponsored by an 'Employees' Beneficiary Association'

"CLEA and CAPF merged their long-term care plans to form the NPFBA. CLEA and CAPF appoint the trustees responsible for administering the NPFBA LTC Plan.... [T]he Department is of the view that the NPFBA LTC Plan is not an employee welfare benefit plan within the meaning of section 3(1) of ERISA. Because CAPF and CLEA individually are not employee organizations within the meaning of section 3(4) of ERISA, they are likewise not jointly an employee organization for the same reasons."

The Proposed Association Health Plan Rules: Implications for Professional Employer Organizations

"The Proposed AHP Rule does not reference PEOs or PEO-sponsored coverage, and accordingly, does not directly implicate or call into question a PEO's ability to sponsor health coverage. However, it does have the potential to significantly impact the coverage options available to small employers, and therefore could have a profound effect on PEOs as drafted.... Notably, ... the Proposed AHP Rule imposes fairly rigorous nondiscrimination requirements that may make it difficult for AHPs and their carriers (if the AHP is fully insured) to secure relatively preferential risk from the community-rated insurance markets or even manage the ongoing risk profile of the AHP long-term."

Financial Pros Notch Win in Money Market Fund Tussle

"Over the course of the debate, [the Association had] argued that changes to MMF rules would greatly reduce investors' interest in utilizing MMFs as a cash management and investment tool, whether applied to all investors or just institutional investors. "

Professionalism for Financial Planners

"The securities industry must recognize that the fiduciary standard operates as a constraint on greed. Through its application certain insidious business practices -- such as payment for shelf space, the receipt of soft dollar compensation far in excess of the value of research supplied to mutual funds, and 'double dipping' of fees, are prohibited under such a standard."

Dentist-Trustee Forfeits Interest in His Professional Association's DB Plan Due to Loan

Press release. Excerpt: The U.S. Department of Labor filed a complaint against Merrill E. Schmidt DDS, Inc. and the trustee of the Merrill E. Schmidt DDS, Inc., Defined Benefit Plan for alleged violations of [ERISA]. The department is seeking to restore losses to an employee benefit plan of the company, which was based in Santa Ana, California.... [The DOL alleges that] no security agreement or promissory note was executed in connection with the loan [from the plan to Dr. Schmidt] ...

Florida Doctors Ordered To Repay Their Professional Association's Profit Sharing Plan; Other Participants Allegedly Strong-Armed into Investing Their Accounts in Risky Limited Partnership

"As part of its lawsuit, the department alleged that Dr. Mays called a meeting of plan participants in April 1995, advising them their investments were not doing well and that the plan had been changed to allow participants to direct their investments. Then, he allegedly met with participants one-on-one, eventually persuading 12 of the plan participants to sign a form indicating what amount they wanted to invest in the soccer partnership."

Gen Z Trusts Financial Professionals, But Not Ready to Hire Them

"Only 30% of Gen Z investors learned about investing from a financial professional, falling behind information gleaned from social media (48%), internet search (47%) and family (45%) ... [W]hen asked to identify their most trusted sources for financial information, Gen Z investors placed financial professionals second at 24%. Parents and family were considered most trusted, at 27% of participants."

Top Tips for Selecting a Financial Professional (PDF)

"Choosing a financial professional -- whether a stockbroker, a financial planner, or an investment adviser -- is an important decision. Consider the tips below as you make your choice. Also [included in this article is] a list of questions you can ask a financial professional whose services you are considering."

Financial Professionals Are Key to Positive Annuity Purchase Experience

"According to the survey of 300 annuity owners, 82% said the opinion of their financial professional made them feel more positive about their decision to buy an annuity, followed by the performance of the annuity itself (76%), market performance (70%) and interest rate changes (67%).... 67% of investors said their top motivation for purchasing their annuity was funding their retirement, and 41% said they did so to generate a 'personal pension' that could provide a reliable income stream, in many cases, for life."

Top Fiduciary Questions to Ask Your Plan's Financial Professional

"How do I protect myself from being sued due to my position as a fiduciary on the 401k? ... What is a fiduciary, and how do you know if your advisor will fulfill that role? ... How does automated investing fit in with the traditional advisory model? ... . Who does our investment professional represent? ... What is this product's true track record over the long run? ... What exactly is a financial 'conflict of interest'? ... How do you get paid?"

What Financial Professionals Think About Financial Wellness

"[1] Financial Wellness is a differentiator and business builder. [2] There is opportunity to expand the reach of wellness beyond just basic and financial topics. [3] Financial wellness solutions may work best using a range of tactics and resources."

Survey of Financial Planners Says DOL's Fiduciary Rule Already Hurting Savers, Financial Professionals

"The Financial Services Roundtable ... polled 600 financial advisers [in July 2017]. The survey, conducted ... one month after the rule's June 9 initial compliance deadline, shows 'significant disruption' to the marketplace ... A majority of the poll's respondents, or 50 percent, report the rule is restricting them from serving their clients' best interests."

Institutionalizing 408b-2 Compliance in Financial Service Firms: New Responsibilities for the Securities Compliance Professional

"Because 408b-2, in particular, is a prohibited transaction rule, ... financial service firms have a huge economic stake in not just making the initial disclosure [under the DOL regulations], but also in making sure that permanent compliance procedures are established, implemented and audited on a routine basis. A number of firms are also beginning to take a closer look at their myriad of revenues streams to make sure that not only are they reported correctly, but that there is a Prohibited Transaction Exemption that otherwise permits the revenue."

FinCEN Further Extends FBAR Filing Deadline for Certain Financial Professionals

Recognizing the need for further study of related questions and concerns, FinCEN today issued FinCEN Notice 2012-1 which further extends the Report of Foreign Bank and Financial Accounts (FBAR) filing deadline for a small subset of individuals with only signature authority over certain foreign financial accounts. The filing deadline for those individuals previously identified in Notice 2011-1 and Notice 2011-2 has been extended from June 30, 2012 to June 30, 2013.

DOL Finalizes Broad Prohibited Transaction Exemption for Financial Institutions and Investment Professionals

"Based on the DOL's revised interpretation of the five-part test for identifying investment advice fiduciaries, it is more likely that plan service providers who provide rollover recommendations will need to rely on the Exemption in the future."

SEC Adopts Rules and Interpretive Guidance Designed to Enhance and Clarify the Obligations of Financial Professionals

"[T]he Commission acknowledged that the broker-dealer and investment adviser business models are inherently different and as a result, adopting a rule that would provide for a uniform fiduciary standard would not be in the best interest of retail customers.... [T]he Commission is undertaking significant retail investor educational efforts to help investors understand the differences between broker-dealers and investment advisers. This will include online videos explaining basic information."