Liquidating fiduciary exception to warn

Accessibility features, such as text descriptions of tables, consecutively numbered footnotes placed at the end of the file, and the text of agency comment letters, are provided but may not exactly duplicate the presentation or format of the printed version. government and is not subject to copyright protection in the United States. 2002).; State filed: Oklahoma; Year: 2002; Outcome: Court held that employer did not establish unforeseen business circumstance defense for failing to provide timely notice, but that the notice given for the shortened time period contained the required information.

Forty percent of retirement/benefits consultants and 43% of retirement advisers believe the regulations will lead to a decline in the number of record keepers they use, according to the report, "The State of DCIO Distribution: 2017."In addition, 26% of retirement/benefits consultants and 35% of retirement advisers believe the rules, which raise investment-advice standards in retirement accounts, will lead to a similar result among asset managers serving DC plans.

State Farm is changing the way the company and its agents handle some retail retirement accounts in response to a new Labor Department regulation that ups the standard of investment advice retirement savers receive.

Beginning in April 2017, when the Department of Labor rule comes into effect, State Farm will only sell and service mutual funds, variable products and tax-qualified bank deposit products through a self-directed customer call center, according to spokeswoman Rachael Risinger.

State Farm and Edward Jones are outliers, though — firms have largely been mum on how they're planning to handle the DOL rule when it comes into effect.

However, many more companies are likely to begin disclosing shortly their anticipated course of action, because the implementation deadline is drawing closer and firms must leave enough time to notify and train their adviser forces, who in turn must notify and educate their clients, according to Denise Valentine, senior analyst at Aite Group.“I think we'll be hearing a lot more of this in the coming weeks,” Ms. “It's not something you want to leave until next year.”Other companies may move to more fee-based business, avoid offering certain products in transaction-based accounts (similar to Edward Jones) or adopt a “self-directed” approach for some products (similar to State Farm) as a way to comply with the DOL rule, Ms. Some firms have also strongly considered an approach whereby they level the commissions among similar products on a brokerage platform to avoid the appearance of a conflict of interest.

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