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fi360 and CEFEX Urge SEC to Implement Third-Party Audits of Registered Investment Advisers (PDF)

"Given the challenges in crafting a five-year strategic plan that meets one of the SEC's most critical objectives, i.e. to promptly detect and deter securities law violations, fi360 and CEFEX believe, and would respectfully suggest, that leveraging private sector assistance through third-party compliance reviews -- the same concept considered by the Commission in 2003 and advanced by Chairman Schapiro in 2009 -- is an appropriate and more assured means of enhancing investment adviser examinations and increasing investor protection."  MORE >>

fi360 Comment Letter to SEC on Recommendations of the Investor as Purchaser Subcommittee on Broker-Dealer Fiduciary Duty (PDF)

"Brokers providing personalized investment advice to retail clients act as investment advisers and should be subject to Advisers Act jurisprudence, rules and guidance.... Brokers are already subject to a common-law fiduciary standard under securities laws for certain advisory activities, and as dual registrants .... Narrowing the broker-dealer exemption will avoid creation of a new layer of regulation and loopholes for the securities industry; and avoid higher compliance costs."  MORE >>

Third Annual fi360-ThinkAdvisor Survey of Investment Advisors: Information and Opinions About the Fiduciary Standard

"Advisors largely rejected the arguments of opponents of placing investors' interests first by extending the fiduciary standard for advice.... [S]urvey respondents said extending to fiduciary standard to brokers: [1] Would not cost investors more for advice (79%). [2] Would not price investors out of the market for advice (69%). [3] Would not limit access to advice or products (68%). Survey participants strongly agreed that investors are unaware of the differences between the fiduciary standard governing investment advisers and the much lower 'suitability' standard used by the brokers."

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fi360 Comment Letter to SEC on Duties of Brokers, Dealers and Investment Advisers (PDF)

"fi360 strongly believes that there should be a uniform standard of conduct for personalized investment advice provided to retail investors ... We believe that investors expect that a uniform standard should be applied, no matter the regulatory affiliation of the individual providing the advice. We believe that the adoption of a uniform standard would not reduce the availability of appropriate investment services or investment products to retail investors."  MORE >>

fi360's Blaine Aikin: DOL's Fiduciary Rule 'Takes Advisors to a Fork in the Road'

"[T]he Rule is serving as a catalyst for needed change in the overall field of professional investment advice, not just in the retirement space.... We have great practitioners in every segment and business model within financial services, but we have been operating in a broken system when it comes to advice. We have been trying to build our profession on an unstable foundation when we have two different standards of conduct for practitioners. A strong foundation for professional advice requires a consistent culture of fiduciary responsibility and enforceable adherence to the fiduciary duties of loyalty and care."

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Birth of an Industry Leads to Need for Specialization by Investment Advisors

"With the introduction to the 'F' word by fi360 in the early 2000's, followed by the Pension Protection Act of 2006, the additional provider and participant disclosures last year, and now the proposed amendment to the definition of an ERISA fiduciary, the competency threshold for selling retirement plans should no longer begin and end with the ability to select and monitor investments."  MORE >>

Influencing Fiduciary Law in 2011

"We here at fi360 will continue our part to advocate for fiduciary responsibility and encourage our fellow fiduciaries to do the same. Therefore, it is important that you continue to send your comments to the SEC in 2011 on the fiduciary duty or any other provisionsof the Dodd-Frank Act that impact you."  MORE >>

Questions and Answers on Monitoring Client and Investment Fees

Excerpt: In this post, you'll find answers to the majority of questions submitted during the [fi360 webinar session on the topic] written by the panelists from the original webinar.

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Prudent Practices for Retirement Income Solutions (PDF)

38 pages. "Retirement savings plans were created to help the masses live long lives in relative prosperity after they've stopped working. With fewer defined benefit plans available and lifespans increasing, concerns around running out of income in retirement have meaningfully increased. This handbook was created to help expand retirement plan participants' access to, and consideration of, retirement income solutions."  MORE >>

Cybersecurity and Retirement Plans (PDF)

46 presentation slides. Topics: [1] The latest guidance on cybersecurity for qualified retirement plans; [2] Tips for hiring a plan service provider; [3] Cybersecurity program best practices for qualified retirement plans; and [4] The role of the financial advisor in cybersecurity.

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Lessons Learned from the ERISA Excessive Fee Lawsuits Filed in 2016 (PDF)

26 presentation slides, Nov. 18, 2021. "Hundreds of ERISA cases filed in last decade ... Ways to analyze changing fiduciary contours ... 2016 saw novel claims tested in court ... Five years later ... Intensive review of 91 'excessive fee' ERISA class-actions ... Key Takeaways for advisors."

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New Consortium Will Promote Income Options in 401(k) Plans

"Broadridge Fi360 Solutions, data provider Cannex, and Fiduciary Insurance Services have teamed to initiate a Lifetime Income consortium to promote the need for guaranteed income options within retirement plans.... Asked about how it differs from the Alliance for Lifetime Income, Faustino said ... '[W]e're more plan-centric and focus on addressing roadblocks to adoption outside of just execution ... Our consortium will be ... focused on accelerating the adoption of retirement income through employer-based plans.' "  MORE >>

How Annuities Can Fit Into a Fiduciary's Planning Process (PDF)

25 presentation slides. Topics: [1] The current state of annuity product types; [2] State of the market of DC annuities -- from a regulatory and operational perspective; [3] Products available and in development, Methods for evaluating annuities; [4] Determining when to include annuities in plan; [5] Placing plan annuities in context of broader financial planning; and [6] Predictions on how the institutional annuity space may evolve.  MORE >>

Steps to Modernize Your Next Recordkeeper RFP

"While it's true that recordkeeper RFPs are an involved process that requires a generous amount of effort, many advisors fail to take certain steps to help expedite and modernize their RFP process.... [1] Set clear timelines and expectations.... [2] Determine what is most important to your client.... [3] Don't invite everybody to the party! ... [4] Share specific and detailed instructions.... [5] Have a framework for evaluating proposals."  MORE >>

To MEP or Not to MEP (PDF)

25 presentation slides. Topics: [1] What is a MEP? [2] Understanding the SECURE Act. [3] What is a PEP? [4] Differentiating MEPs and PEPs. [5] How does a MEP or PEP work? [6] Advantages and disadvantages. [7] Expanding your small plan offering with plan aggregation. [8] Alternatives to MEPs/PEPs.  MORE >>

What Crayola Color of 3(16) Does Your Vendor Provide? (PDF)

67 presentation slides. Topics: [1] What is a fiduciary (considering risk, ERISA intent, and roles)? [2] Which kind are they (ERISA section 3(16) plan administrator or ERISA section 3(16) service provider)? [3] An advisor value-add: monitoring the prudence of a 3(16) selection.  MORE >>

In with the New, Out with the Old: A Flood of Quasi-fiduciary Rules Is Coming (PDF)

27 presentation slides. Topics include: [1] SEC initiatives; [2] DOL activity; [3] State fiduciary initiatives; [4] ERISA litigation trends; [5] 2019 legislative outlook.  MORE >>

How Mandatory Force-Outs Turned Into a Fiduciary Concern (PDF)

22 presentation slides. Topics: [1] Why it's important for fiduciaries to scrutinize the auto-rollover process. [2] Pitfalls to avoid for complying with auto-rollover rules. [3] What a prudent auto-rollover process looks like. [4] Relevant due diligence factors for auto-rollover providers.  MORE >>

Fiduciary Conduct and Your Reputation: What's Trust Worth as an Investment Steward? (PDF)

25 pages. "[A] great reputation can and should be your organization's most valuable asset.... [T]he recognized attribute every investment steward must establish is to be a trustworthy caretaker of other people's money.... [T]here are specific factors, grounded in fiduciary principles, that can be managed to build a great reputation"  MORE >>

Understanding the Causes of 401(k) Litigation and How to Avoid a Lawsuit (PDF)

20 presentation slides. Topics: [1] Litigation landscape: why lawsuits happen; [2] The issues; [3] How to stay out of court; and [4] Legal/regulatory compliance versus professional conduct standards.  MORE >>