Press Release

Broker Dealers and Advisors Risk Prohibited Transactions When Recommending IRA Rollovers

Issued by Fiduciary Decisions

June 9, 2021

Tigard, OR -- Fiduciary Decisions (FDI) announced today they are experiencing a surge in requests from Broker Dealers and RIAs for assistance in complying with the DOL’s PTE 2020-02. “We anticipated and planned for this,” indicated Tom Kmak CEO of Fiduciary Decisions. “Investors want and need recommendations. Most rollover recommendations are now considered fiduciary advice. As ERISA fiduciaries, firms must support advisors in avoiding prohibited transactions.”

With the compliance date of December 21st, 2021, now only 6 months away and recent reports of planned rigorous enforcement around IRA rollovers recommendations, this issue has become priority number one for the industry. “Current IRA workflows do not address the requirements of the PTE,” indicated Matt Golda, Chief Operating officer at Fiduciary Decisions. “So, firms are taking steps to supplement their current process or reviewing stand alone solutions that address it.”

FDI supports Broker Dealers and RIAs with PTE 2020-02 compliance through the following solutions:

1) Full-Service Compliance Solution – which FDI has been offering since 2016

• Captures required data, creates side-by-side comparison and supports compliance workflows

2) FDI Connect – to enhance existing workflows

• Components (data, method, and/or output) that can be incorporated into your existing rollover workflow
• Integration via flexible APIs

3) Plan Benchmarking data for when (not if) actual plan data isn’t available

• Avoid the use of stale/incomplete/unavailable public filing or crowd sourced plan data
• Plan benchmarking data is the next best option for use in meeting the PTE per the DOL

“As we approach the compliance date, it is the flexibility of our solution coupled with access to our high-quality plan benchmarking data that makes us unique,” stated Michael Narkoff, Head of Sales at Fiduciary Decisions.

“In 2011, DOL 1.0 didn’t make it. In 2018, 2.0 was vacated. But, now 3.0 is here and it is moving forward and there is likely more regulation to come.” stated Craig Rosenthal, Head of Strategy and Chief Marketing Office at Fiduciary Decisions.

While viewed by some as burden, many others are embracing this as an opportunity to deepen client relationships. “Considering investor needs and preferences in relation to what the plan and the IRA provide is the right thing to do. It is good to see the industry adopting and expanding a best interest concept that empowers their advisors and helps their clients.” stated Golda.

 About Fiduciary Decisions: Fiduciary Decisions is the industry leader for independent, comprehensive and actionable Value and Fee Benchmarking Services and offers innovative tools and solutions for the defined contribution space. Industry leading tools include the Business Management Dashboard – a next generation practice management platform for Broker Dealers and retirement plan advisors enabling them to manage their business more efficiently and effectively than ever before. The IRA Rollover Compliance solution helps service providers comply with DOL PTE 2020-02 and produce a client-ready output that documents their IRA rollover recommendations. Founded in 2008, the company works with many of the industry’s largest and most respected Recordkeepers, Broker/Dealers, Advisor/Consultants and Plan Sponsors.

Learn more at www.fiduciarydecisions.com

For More Information Contact:
Craig Rosenthal
Head of Strategy and Chief Marketing Officer
203-405-1853
craig.rosenthal@fiduciarydecisions.com

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