Press Release

Fiduciary Decisions Announces DOL PTE 2020-02 Rollover Trend Data 90 Days Post Enforcement

Issued by Fiduciary Decisions

Oct. 18, 2022

Fiduciary Decisions (FDI), the retirement and wealth industry’s leading provider of decision support systems, has announced the industry’s first metrics examining Broker Dealer and RIA utilization of a DOL PTE 2020-02 compliance solution. This data was extracted from FDI’s Rollover Decision Support System (RDSS) beginning with the DOL enforcement date of July 1, 2022 through September 30, 2022

“We have a significant and meaningful mix of Broker Dealer and RIA clients analyzing thousands of rollovers using RDSS and we wanted to do a 90 day review to see how our projected usage matched the reality. Some of the findings were affirmative, while others were surprising. This type of analysis is not only good for our firm, but it is good for our clients.” says Tom Kmak, CEO.

The initial results of FDI’s RDSS analysis showed:

• Activity was equally split between unsolicited and recommendation rollovers. However, in the later week’s recommendation activity was outpacing unsolicited which could be an important trend
• The total amount of dollars rolled over was equally split between unsolicited and recommendation thus disproving the theory that unsolicited rollovers would-be smaller dollar amounts
• Rollover destinations summarized as 92% rolled into a new IRA, 7% stayed in their existing retirement plan and 1% rolled into their new employer’s plan
• When looking specifically at recommendations, 43% were plan to IRA and 51% were IRA to IRA
• As it related to the gathering of investor data to support a recommendation analysis, advisors were able to obtain actual data (participant statement and/or 404a-5 documents) for 45% of the rollovers. FDI’s proprietary plan benchmark data was used for 55% of the rollovers
• FDI identified multiple cases where advisors were processing multiple rollovers for the same investor. This points towards advisors successfully aggregating assets at the investor level

“You can glean from these metrics that the regulation is beginning to work as the DOL intended” according to Matt Golda, Chief Product Officer. “We will use these metrics to inform the next iteration of RDSS for our clients and prospective clients.”

If your firm needs help solving for DOL PTE 2020-02, please visit the RDSS home page at https://www.fiduciarydecisions.com/services/ira-solutions/

About Fiduciary Decisions

Fiduciary Decisions is the industry leader for independent, comprehensive, and actionable value and fee benchmarking and plan design services for the defined contribution space. In addition, FDI also offers solutions for Wealth Management and Advisory firms, including the Business Management Dashboard, a next generation practice management platform for retirement plan practices, and a DOL PTE 2020-02 Rollover Decision Support platform. Founded in 2008, the company now works with many of the industry’s largest and most respected Recordkeepers, Broker/Dealers, Advisor/Consultants and Plan Sponsors. For more information about Fiduciary Decisions, visit www.fiduciarydecisions.com

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