Nicholas Pension Consultants
Compensation Strategies Group, Ltd.
Nova 401(k) Associates
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|The Fiduciary Exemption for Commissions|
Mar. 15, 2015
"[A] fiduciary adviser must receive 'level compensation,' so that the adviser is not, in effect, able to recommend investments that increase the adviser's compensation. Obviously, that is a conflict of interest. However, under ERISA and the Internal Revenue Code, it is also a prohibited transaction.... At first blush, it appears that the proposal will require more disclosure about compensation and conflicts of interest ... and will also require that a fiduciary adviser act in the best interest of the participants. Of course, that's difficult to measure ... so the devil will be in the details[.]"
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