A guide to help advisors understand the proposed Department of Labor changes to the fiduciary definition regulations.
The DOL’s proposed changes to the fiduciary definition regulations are causing financial advisors to re-examine their business models and to determine whether they may be a fiduciary to the plan and participants under the proposed regulations. These proposed changes will not only impact qualified retirement plans, but non-qualified plans too, such as IRAs. There could be major implications for how advisors will work with IRAs if these changes are implemented. This Practice Guide provides a framework to help advisors understand this issue by addressing the following questions:
What are the rules today?
What is being proposed?
How would some of the proposed changes impact an advisor’s practice?
Are there any action steps an advisor can take today in anticipation of the new rules?
FATCA Withholding from a Security Master and Payment Perspective
Presented at Nordic FATCA & Withholding Tax Congress Stockholm, Sweden June 12-13, 2013
1847 Holdings LLC (1847) seeks to provide non-correlated returns by combining the most attractive attributes of owning private, lower-middle market businesses with the liquidity and transparency of a publicly traded company. 1847’s unique structure permits flow-through tax treatment for shareholders. As a result, 1847 will seek to generate returns for shareholders through consistent, annual distributions of operating subsidiary income and capital appreciation resulting from the timely sale of operating subsidiaries. 1847’s current portfolio includes Neese Inc., an agricultural industry services company with a 27-year operating history and growing market share in waste disposal services, and Goedeker’s, one of the top-30 largest appliance retailers in the country.
Webinar on Hidden Fees in 401k plans. How they impact plan holders and the potential liability that business owners and fiduciaries are now exposed to.
1847 Holdings LLC (1847) seeks to provide non-correlated returns by combining the most attractive attributes of owning private, lower-middle market businesses with the liquidity and transparency of a publicly traded company. 1847’s unique structure permits flow-through tax treatment for shareholders. As a result, 1847 will seek to generate returns for shareholders through consistent, annual distributions of operating subsidiary income and capital appreciation resulting from the timely sale of operating subsidiaries. 1847’s current portfolio includes Neese Inc., an agricultural industry services company with a 27-year operating history and growing market share in waste disposal services, and Goedeker’s, one of the top-30 largest appliance retailers in the country.
The Recent Department of Labor Conflicts of Interest and Fiduciary rulings provide an expanded definition of the fiduciary obligation financial advisors are required to operate under when working with their clients who have qualified assets.
Each month of AAHOA Lodging Business features a section called the AAHOA Report, detailing important legislation the association supports and initiatives it undertakes for members. This is an example from the Jan. 2012 issue.
This presentation offers an overview of the current issues in governance of single-employer pension plans, governance issues unique to MEPPs (private sector + public sector), jointly governed target benefit plans, governance of PRPPs, "funding policies" and CAPSA Guideline No. 7, as well well as some practical perspectives on DC governance.
The dirty little secret stopping foreign shareholders from exercising their v...David Baran
Looking past the Kabuki (pun-intended) of Japan’s recent corporate governance awakening you will find an uncomfortable reality: not all shareholders get to vote. One would naturally assume that beneficial owners of common shares are entitled to vote at the annual shareholders meeting or whenever shareholder votes are called for. However, technically speaking, owning common stock in Japanese corporations entitles the shareholder of record to vote, not the beneficial owner. Often the shareholder of record is a third party such as a custodian or prime broker, which might not vote in the best interests of the ultimate beneficial owner. Sadly, if the beneficial shareholder wants absolute control of their vote, the process can be daunting if the shareholder is not domiciled in Japan.
ERISA Fiduciary Issues: A Guide for AdvisorsBroadridge
The role, expectations and legal requirements for ERISA fiduciary advisors is changing. Plan sponsors are increasingly looking to retirement plan advisors for guidance. This brings potential business opportunities but also more regulatory scrutiny. This paper provides advisors with guidelines to understand the plan sponsor role as fiduciaries and the steps to take to avoid breaching their duties.
A final regulation defining who is a "fiduciary" of an employee benefit plan under the Employee Retirement Income Security Act of 1974 as a result of giving investment advice to a plan or its participants or beneficiaries.
FATCA Withholding from a Security Master and Payment Perspective
Presented at Nordic FATCA & Withholding Tax Congress Stockholm, Sweden June 12-13, 2013
1847 Holdings LLC (1847) seeks to provide non-correlated returns by combining the most attractive attributes of owning private, lower-middle market businesses with the liquidity and transparency of a publicly traded company. 1847’s unique structure permits flow-through tax treatment for shareholders. As a result, 1847 will seek to generate returns for shareholders through consistent, annual distributions of operating subsidiary income and capital appreciation resulting from the timely sale of operating subsidiaries. 1847’s current portfolio includes Neese Inc., an agricultural industry services company with a 27-year operating history and growing market share in waste disposal services, and Goedeker’s, one of the top-30 largest appliance retailers in the country.
Webinar on Hidden Fees in 401k plans. How they impact plan holders and the potential liability that business owners and fiduciaries are now exposed to.
1847 Holdings LLC (1847) seeks to provide non-correlated returns by combining the most attractive attributes of owning private, lower-middle market businesses with the liquidity and transparency of a publicly traded company. 1847’s unique structure permits flow-through tax treatment for shareholders. As a result, 1847 will seek to generate returns for shareholders through consistent, annual distributions of operating subsidiary income and capital appreciation resulting from the timely sale of operating subsidiaries. 1847’s current portfolio includes Neese Inc., an agricultural industry services company with a 27-year operating history and growing market share in waste disposal services, and Goedeker’s, one of the top-30 largest appliance retailers in the country.
The Recent Department of Labor Conflicts of Interest and Fiduciary rulings provide an expanded definition of the fiduciary obligation financial advisors are required to operate under when working with their clients who have qualified assets.
Each month of AAHOA Lodging Business features a section called the AAHOA Report, detailing important legislation the association supports and initiatives it undertakes for members. This is an example from the Jan. 2012 issue.
This presentation offers an overview of the current issues in governance of single-employer pension plans, governance issues unique to MEPPs (private sector + public sector), jointly governed target benefit plans, governance of PRPPs, "funding policies" and CAPSA Guideline No. 7, as well well as some practical perspectives on DC governance.
The dirty little secret stopping foreign shareholders from exercising their v...David Baran
Looking past the Kabuki (pun-intended) of Japan’s recent corporate governance awakening you will find an uncomfortable reality: not all shareholders get to vote. One would naturally assume that beneficial owners of common shares are entitled to vote at the annual shareholders meeting or whenever shareholder votes are called for. However, technically speaking, owning common stock in Japanese corporations entitles the shareholder of record to vote, not the beneficial owner. Often the shareholder of record is a third party such as a custodian or prime broker, which might not vote in the best interests of the ultimate beneficial owner. Sadly, if the beneficial shareholder wants absolute control of their vote, the process can be daunting if the shareholder is not domiciled in Japan.
ERISA Fiduciary Issues: A Guide for AdvisorsBroadridge
The role, expectations and legal requirements for ERISA fiduciary advisors is changing. Plan sponsors are increasingly looking to retirement plan advisors for guidance. This brings potential business opportunities but also more regulatory scrutiny. This paper provides advisors with guidelines to understand the plan sponsor role as fiduciaries and the steps to take to avoid breaching their duties.
A final regulation defining who is a "fiduciary" of an employee benefit plan under the Employee Retirement Income Security Act of 1974 as a result of giving investment advice to a plan or its participants or beneficiaries.
The Retirement Landscape: Technical and Legal UpdateBPAS
The DoL’s proposed fiduciary regulation is the most controversial ERISA initiative since the enactment of the statute in 1974. If adopted as proposed, the regulation will have significant impact on financial institutions selling products to IRAs and 401(k) plans. The proposed changes would essentially open up the $7 trillion IRA market to ERISA, impacting the sale of investment products, from mutual funds to variable annuities, to IRAs. The proposal would also change the definition of an “advice fiduciary,” making it easier for the DoL to assert claims against persons or entities selling investment products or gathering assets.
In this session, we’ll discuss the impact of the DoL proposal for your business, from the stand-point of what needs to be changed to make the proposal “workable” and what you’ll need to do to comply if the proposal is adopted without change. Specifically, this session will focus on:
Changes to the definition of Investment Advice Fiduciary
Fiduciary status “carve-outs” for sales presentations
The new Best Interest Contract Exemption for IRAs
Changes to PTE 84-24 and other Exemptions
Guest Speaker: Steve Saxon, Principal, Groom Law Group
New research from InvestmentNews, sponsored by Legg Mason, approximates how the DOL fiduciary rule will set money in motion and alter business models across the advice industry.
Webinar | Perspectives on the Proposed DOL "Fiduciary Rule"NICSA
On April 20, 2015 the DOL published its re-proposed regulation on the definition of “Fiduciary” under section 3(21) of ERISA. The proposal included not only the change to the “Fiduciary” definition, but also two new prohibited transaction exemptions (“PTE”), as well as a number of amendments to existing PTEs. Since publication the DOL has received an avalanche of comment letters on the proposal, has held four days of hearings on the proposal and has accepted additional comment letters following those hearings. The proposal, if implemented in its current form will be a true game changer for the Retirement and RIA industries. As we now wait for the DOL to sift through the mountain of comment letters and hearing transcripts this session allows us an opportunity to pause and reflect on the current proposal and to provide unique perspectives from mutual fund, broker dealer, legal and retirement record keeper stake holders on how the proposal will impact the retirement industry.
Achieve greater certainty through pension deriskingLori Jones
The presentation provided an overview of the changing landscape for defined benefit pension plans including higher PBGC premiums, new mortality tables and improved funding status as a result of favorable investment performance. These changing conditions have encouraged plan sponsors to consider “de-risking” defined benefit pension plans through annuitization and lump sum windows.
Lori provided insight into legal issues within the context of de-risking including a background of applicable ERISA fiduciary rules, recently issued recommendations from the ERISA Advisory Council, IRS private letter rulings and a pending case involving Verizon’s annuitization of its pension plan.
Big Data in the Fund Industry: From Descriptive to Prescriptive Data AnalyticsBroadridge
NICSA’s Technology Committee, including Dan Cwenar, President, Access Data, Broadridge, offer perspectives on the “state of play” of Big Data in the fund industry:
The history of “ Big Data”
The definition of Big Data in the context of industry applications.
The movement from descriptive towards prescriptive analytics in driving decisions
Common misconceptions about the use of predictive analytics.
FATCA Compliance: Riding a Roller Coaster of Regulatory ChangeBroadridge
FATCA will impose new due diligence, withholding, and reporting requirements on financial institutions. This paper outlines the significant regulatory change FATCA brings to provide the IRS with an increased ability to detect U.S. tax evaders—specifically, those among U.S. “persons” (individuals or entities) who maintain foreign accounts and investments either directly or indirectly, through their ownership in foreign entities.
The availability of electronic solutions, the regulatory framework within which to offer them and an increasing investor appetite for digital information has created new opportunities in investor communications. Today, companies can provide information to investors when, where, and how they want it – and that makes for more engaged investors.
That’s never been more important. as governance, transparency and accountability in capital markets become more closely scrutinized and more rigorously measured, engaging investors, encouraging voter participation and demonstrating leading communication practices is vital.
Managing Big Data: A Big Problem for BrokeragesBroadridge
Reliable mutual fund invoicing and analysis has been challenging the industry for years due to the regulatory environment and other factors, and in this report we explore key concerns, current approaches, and the way forward. Based on in-depth interviews with financial services executives, this paper uncovered the significance of a data management and analytical challenge facing brokerages, which has led to lost revenue, increased compliance and reputational risk, and lost sales opportunities.
The Multi-Asset Class Conundrum: Solving Post-Trade Complexities Across Busin...Broadridge
As trading across multiple asset classes increases, operating in silos is no longer an effective strategy for optimizing post-trade efficiency, mitigating risk and capitalizing on market opportunities. This paper uncovers how leading firms are consolidating their operations, data and technology infrastructures to create a center of excellence for multi-asset post-trade processing.
Rethinking Reconciliation: How a Global Center of Excellence Can Enhance Risk...Broadridge
In two years, outsourced reconciliation solutions have grown exponentially as increased focus on risk, regulations, and cost reduction has heightened the need for greater transparency and efficiency across all areas of financial services operations. Discover how leading financial institutions are enhancing risk management and reducing costs through a global center of excellence for reconciliations.
Fee and Commission Management in Global MarketsBroadridge
Look at key trends, challenges and solutions in fee and commission management. The challenge for any global financial institution is the sheer complexity and number of relationships and fees. The ongoing financial crisis has intensified the need for transparency and risk reduction. Explore the potential benefits of automation of commission and fees management and consider ways to quantify costs savings and other gains.
Global Investing: Considerations for Building an End-to-End SolutionBroadridge
US clients are missing out on 90% of the world’s investment opportunities. Traditionally, firms have faced cost, complexity, and time-to-market hurdles when considering how to offer foreign securities to their clients. The paper defines the critical capabilities brokerage firms need to support international investing and provides best practices and a questionnaire to help design a roadmap for global expansion.
The New Hedge Fund-Prime Broker RelationshipBroadridge
The financial crisis has changed the relationship between hedge funds and prime brokers. With the default of some leading providers, funds have realized that they should diversify their prime broker relationships and require more transparency on operational processes of prime providers. However, as the funds industry regains momentum, they are looking to their prime brokers to provide services that will support business expansion. Hence, prime brokers need to adapt their offering and IT infrastructure to respond to the changing market.
Transforming Customer Engagements in a Digital WorldBroadridge
Financial services companies must adapt to new communications channels as customers are more connected than ever and expect companies they do business with to cater to their preferences. Businesses must move beyond focusing on marketing channels as silos and now consider how channels and devices need to connect across the full customer experience.
Broker-Dealer Outsourcing: Key Regulatory Issues and Strategies for ComplianceBroadridge
Due to the efficiencies and economics of outsourcing, broker-dealers are relying more and more on outsourcing for a broader range of tasks. However, because of new and stricter regulations, outsourcing presents ever-growing compliance and oversight challenges. This paper explores how to retain regulatory controls while gaining the maximum benefit from outsourcing.
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
Website – www.pmday.org
Youtube – https://www.youtube.com/startuplviv
FB – https://www.facebook.com/pmdayconference
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Skye Residences | Extended Stay Residences Near Toronto Airportmarketingjdass
Experience unparalleled EXTENDED STAY and comfort at Skye Residences located just minutes from Toronto Airport. Discover sophisticated accommodations tailored for discerning travelers.
Website Link :
https://skyeresidences.com/
https://skyeresidences.com/about-us/
https://skyeresidences.com/gallery/
https://skyeresidences.com/rooms/
https://skyeresidences.com/near-by-attractions/
https://skyeresidences.com/commute/
https://skyeresidences.com/contact/
https://skyeresidences.com/queen-suite-with-sofa-bed/
https://skyeresidences.com/queen-suite-with-sofa-bed-and-balcony/
https://skyeresidences.com/queen-suite-with-sofa-bed-accessible/
https://skyeresidences.com/2-bedroom-deluxe-queen-suite-with-sofa-bed/
https://skyeresidences.com/2-bedroom-deluxe-king-queen-suite-with-sofa-bed/
https://skyeresidences.com/2-bedroom-deluxe-queen-suite-with-sofa-bed-accessible/
#Skye Residences Etobicoke, #Skye Residences Near Toronto Airport, #Skye Residences Toronto, #Skye Hotel Toronto, #Skye Hotel Near Toronto Airport, #Hotel Near Toronto Airport, #Near Toronto Airport Accommodation, #Suites Near Toronto Airport, #Etobicoke Suites Near Airport, #Hotel Near Toronto Pearson International Airport, #Toronto Airport Suite Rentals, #Pearson Airport Hotel Suites
Skye Residences | Extended Stay Residences Near Toronto Airport
IRAs & the ERISA Fiduciary Rules
1. Updates and best practices for a changing
regulatory environment
IRAs & the ERISA
fiduciary rules
2. 2
IRAS & THE ERISA FIDUCIARY RULES | EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Interplay of ERISA Fiduciary Rules & IRA Rollovers
The Department of Labor’s (DOL’s) proposed changes to the
fiduciary definition regulations have been the subject of heated
debate in our industry over the last few years – causing many
advisors to re-examine their business model and analyze whether
they are a fiduciary to the plan (and participants) today vs. under
the anticipated re-proposed regulations.
The fiduciary conversation has taken an interesting turn in recent months. Much of the discussion
has focused on speculation about the potential impact the anticipated regulations could have on
Individual Retirement Accounts (IRAs). Why has this become such a big concern? A significant amount
of retirement savings dollars are held in IRAs – more than $5.7 trillion dollars as of March 31, 2013 (The
U.S. Retirement Market, First Quarter 2013 (ICI)), representing more than 25 percent of retirement savings
assets. And this number is expected to grow as baby boomers retire. IRAs are an important component
of many advisors’ growth strategy.
The current debate regarding IRAs is focused on how the expanded fiduciary definition will be applied
to IRAs:
• Will advising a participant to make a rollover from an employer plan result in ERISA fiduciary status?
• Will investment advice provided to IRA holders be considered “investment advice for a fee” under the
same definition as employer plans such as 401(k) plans?
• Will the rules apply both to broker-dealers and registered investment advisors (referred to collectively
as “advisors” in this Practice Guide)?
While we don’t know what the re-proposed fiduciary definition regulation will look like, most industry
experts anticipate a broader definition of “fiduciary” that will result in more broker-dealers and
registered investment advisors becoming ERISA fiduciaries. Activities that today are considered
non-fiduciary investment support or education for plan sponsors and participants may be considered
fiduciary activity under the DOL regulations expected to be released later in 2013.
Given public comments by Assistant EBSA Secretary Phyllis Borzi, it is likely that the expanded fiduciary
definition will also have an impact on how advisors work with IRAs. Advisors may be considered an ERISA
fiduciary for investment support activities relating to IRAs and IRA rollovers that today are considered
non-fiduciary activities. Ultimately, this means that unless a prohibited transaction exemption is
available, an advisor’s business model and compensation structures may need to change if they work
with IRAs – or the advisor may be engaged in a prohibited transaction.
Some industry commenters and members of Congress have argued that applying the fiduciary rules
to IRA activity without sufficient prohibited transaction exemptions could have a chilling effect on
individuals’ access to IRA financial advice, particularly with small rollover balances.
3. 3
IRAS & THE ERISA FIDUCIARY RULES | EXECUTIVE SUMMARY
Expanded IRA Debate
The IRA rollover debate is a complex one that cuts across several regulatory agencies – DOL, IRS, SEC,
and FINRA. IRAs have also captured the attention of Congress. The Government Accountability Office
(GAO) increased attention to the IRA rollover issue with its March 2013 report entitled 401(k) Plans:
Labor and IRS Could Improve Rollover Process for Participants. In the report, the GAO criticized service
providers for encouraging IRA rollovers when a rollover may not have been in the best interests of the
participant, in some cases by using misleading or incomplete information.
The GAO report played a big role in expanding the IRA rollover debate to explore whether additional
support is needed to help plan participants make more informed IRA rollover decisions. Suggestions
from the GAO and others include:
• Providing participants who are eligible for a rollover a concise written summary explaining a
participant’s distribution options, including the option to roll assets to a new employer plan, and listing
key factors a participant should consider when comparing possible investments.
• Mandating expanded fee information for IRAs similar to the disclosures now required under the ERISA
404a-5 regulations for participant-directed plans.
Scope of this Practice Guide
The purpose of this Practice Guide is to provide a framework to help advisors understand this fast-
evolving issue by addressing the following questions:
• What are the rules today?
• What is being proposed?
• How would some of the proposed changes impact an advisor’s practice?
• Are there any action steps an advisor can take today in anticipation of the new rules?
4. 4
IRAS & THE ERISA FIDUCIARY RULES
Current Rules – Under the current law
and regulations,
• An advisor who is not otherwise a plan fiduciary
does not become an ERISA fiduciary merely
because they are advising plan participants
regarding rollovers, even if the advisor will
receive compensation if the assets are rolled to
an IRA (DOL Advisory Opinion 2005-23A).
• If an advisor is a fiduciary to the plan, however,
rollover advice potentially gives rise to a
prohibited transaction because the fiduciary is
providing guidance that can potentially increase
their compensation.
Proposed DOL Changes – In 2010, the DOL
proposed changes to the definition of who is
considered a fiduciary under ERISA Section
3(21) as a result of providing investment advice
for a fee.
• The DOL proposed modifying the current five-
part test by eliminating the requirement that
the advice be provided on a “regular basis” and
that the advice be the “primary basis” for the
investment decisions. These two changes would
significantly expand the group of advisors who
would be considered ERISA fiduciaries based on
providing investment advice.
• The DOL also asked for comments as to whether
advising plan participants regarding rollovers
should be subject to a fiduciary standard.
Re-proposed fiduciary definition regulations are
expected later in 2013. While we do not know at
this time what will be included in the re-proposed
regulations, given public comments made by
Assistant Secretary Phyllis Borzi, most industry
commenters believe there will be a broader
definition of advisor activities that will result
in fiduciary status and that the regulations will
clarify how that broader fiduciary standard applies
to IRAs – particularly IRA rollovers. Assistant
Secretary Borzi has also indicated that the re-
proposed regulations will be accompanied by a
robust economic analysis and a list of proposed
exemptions to types of transactions prohibited by
the regulations.
The Changing IRA
Landscape
Let’s begin by sizing up the IRA rollover
opportunity. According to estimates by the ICI, at
the end of first quarter 2013, defined contribution
plans held more than $5.4 trillion, and IRAs held
more than $5.7 trillion of the estimated $20.8
trillion in total retirement assets.
A substantial portion of these IRA assets
originated in an employer retirement plan or other
retirement arrangement that was rolled over to
the IRA. Rollovers from employer plans to IRAs
that occur when people change jobs or retire are
the greatest source of dollars flowing into IRAs.
It is estimated that 10,000 baby boomers (born
between 1946 and 1964) turn 65 each day. With
more than 78 million baby boomers expected
to retire over the next 20 years, most industry
experts anticipate substantial growth in IRAs.
Capturing these rollovers and incorporating them
into a retirement income strategy is an important
practice focus for many advisors.
Regulatory Environment
For Advisors
IRAs Snared in the ERISA Fiduciary
Regulations Debate
IRAs are subject to the same prohibited
transaction rules as employee retirement plans,
although the underlying statutory basis is Internal
Revenue Code Section 4975 rather than ERISA. The
IRS has primary responsibility for ensuring that
IRAs and employer plans follow the requirements
set forth in the Internal Revenue Code.
However, by agreement between the Treasury
Department and the DOL under Section 2 of the
Reorganization Plan of 1978, the interpretation
and rulemaking authority for prohibited
transactions under both ERISA and the Internal
Revenue Code were consolidated and transferred
to the DOL. The IRS retained the responsibility
to enforce the tax laws and impose excise taxes
on prohibited transactions.
IRAs Are a Big Source
of Retirement Savings
...and Getting Bigger
With more than 78
million baby boomers
expected to retire
over the next 20 years,
most industry experts
anticipate substantial
growth in IRAs.
5. 5
IRAS & THE ERISA FIDUCIARY RULES
ENTITY IRA GUIDANCE/COMMENTARY
DOL Re-proposed fiduciary definition regulations (anticipated late 2013)
• Expanded definition of fiduciary
• Will clarify impact of rules on IRAs
Authority over interpretation of prohibited transactions (Reorganization
Action of 1978)
SEC Exploring impact of a harmonized fiduciary standard for investment advisors
and broker-dealers when providing individualized advice to retail investors
FINRA Guidance for marketing and communications regarding fees associated with
retail brokerage accounts and IRAs (Notice 2013-23 (July 2013))
GAO Detailed report and recommendations regarding IRA rollovers (401(k)) Plans:
Labor and IRS Could Improve Rollover Process for Participants (March 2013)
IRS Primary responsibility for IRA guidance and enforcement
Alphabet Soup of Agencies Involved
in IRA Oversight
While the current focus has been primarily on
how IRA activity will be affected by the anticipated
DOL fiduciary regulations, IRAs are subject to
oversight by a number of different organizations.
Following is a quick snapshot of agencies that
have recently provided input that may impact
IRA rollovers.
Congressional Interest in IRA Rollovers
Congress has been engaged in both the fiduciary
definition debate and the IRA rollover debate.
There has been significant criticism of the
original proposed (and then withdrawn) fiduciary
regulations and the inclusion of IRAs under these
regulations. Some of the criticism comes from
the investment world, particularly in regards
to the increased liability for any investment
services provided to IRA holders. Some fear it will
disrupt compensation and business structures
in a market that is supported largely by broker-
dealers and advisors receiving commissions and
12b-1 fees for their IRA services. Members of the
Congressional Black Caucus and the Congressional
Hispanic Caucus, in a June 14, 2013, letter to acting
Department of Labor Secretary Seth Harris, raised
concerns that the DOL’s re-proposal of the ERISA
fiduciary definition regulations “could severely
limit access to low-cost investment advice” and
that a new, more restrictive definition of fiduciary
“would add yet another barrier to accessing
qualified retirement planning services.”
Given the concerns regarding IRA rollovers raised
by the GAO in its IRA rollover report (referenced
earlier), there has been speculation that expanded
IRA fee disclosures may be in our future. The GAO
concluded that, “Participants may have difficulty
finding information on IRA fees, and when they
do find it, they may not understand it.” Although
some financial disclosure information is required
today for IRAs, it is far less extensive than the
detailed information now required under the
ERISA 404a-5 regulations for retirement plan
participants in participant directed individual
account plans. No specific legislation or regulation
had been introduced as of the date this Practice
Guide was published.
6. 6
IRAS & THE ERISA FIDUCIARY RULES
We may also see further discussion regarding
the GAO suggestion to provide retirement plan
participants who become eligible for rollovers
more information on their distribution options,
including
• the option to roll over assets to a new employer
plan, and
• key factors a participant should consider when
comparing possible investments.
Potential Impact on Advisors Who Work
With IRAs
As of the date this Practice Guide was published,
we don’t know precisely what will be included in
the re-proposed ERISA fiduciary rules or whether
additional IRA disclosures will become a reality.
If the proposed changes being discussed by the
DOL and Congress are adopted, however, it could
have a substantial impact on the way advisors
work with IRAs. Possibilities include:
• Advisors may be considered a fiduciary for
investment support activities relating to
qualified plan sponsors and participants that
today are considered non-fiduciary activities.
• Soliciting IRA rollovers may result in fiduciary
status.
• Investment (advice) support to IRAs may be
subject to the ERISA fiduciary standard.
Ultimately, this means an advisor’s business
model and compensation structures may need to
change if they work with IRAs – or they may be
engaged in a prohibited transaction.
In the interim, the current rules remain in effect:
• If an advisor is not an ERISA fiduciary to the
plan or participants under ERISA 3(21) or 3(38),
a recommendation to roll assets to an IRA does
not make the advisor an ERISA fiduciary, even
if the advisor will receive compensation if the
assets are rolled to an IRA. Examples include
advisors who do not have a relationship with the
plan or who provide investment education, and
other non-fiduciary support to the plan.
• If an advisor is a fiduciary to the plan or
participants, their recommendation regarding
rollovers may result in a prohibited transaction.
REGULATORY CHECKPOINTS
1. If you pursue IRA rollovers from
retirement plan participants, do you
provide services to the plan from which the
rollover will be made?
• No – Under current rules, advice regarding
the rollover does not alone result in
ERISA fiduciary status.
• Yes – Evaluate your service model to
determine whether you are an
ERISA fiduciary.
2. Do you limit your support services to
investment education and other non-
fiduciary support?
• Yes – Under current rules, advice regarding
the rollover does not alone result in ERISA
fiduciary status.
• No – If you are an ERISA 3(21) investment
advisor or 3(38) investment manager,
solicitation of rollovers from that plan may
result in a prohibited transaction.
The advisor should consult with a legal advisor
regarding their business model.
Advisor Action Steps
In this section of the Practice Guide, we’ll suggest
three actions that may help advisors evaluate
how the current rules regarding rollover advice
and solicitation may affect their practice and
what advisors can do to stay on top of this rapidly
evolving issue.
Action #1: Evaluate Your Rollover
Business Model
Analyze your current IRA rollover practices
Given the current focus on IRA rollover activity,
it is prudent to analyze your current practices
relative to IRA rollovers from retirement plans.
Consider both whether your business model
raises regulatory concerns under ERISA as well as
how your model affects your growth objectives.
The following questions may be helpful as a
starting point to understand the regulatory
impact of your current business model relative
to IRA rollovers.
7. 7
IRAS & THE ERISA FIDUCIARY RULES
If your answers to the questions raise
concerns that your rollover solicitations
may be prohibited, you should review your
service model with your legal advisor to confirm
whether your services are in fact fiduciary
services and whether any exemptions are
available. Some legal advisors believe there
are alternatives that may enable an advisor
to segment the fiduciary investment support
and non-fiduciary IRA rollover support they
provide to a plan and its participants, subject to
written plan and participant-level agreements.
You should consult with a legal advisor before
pursuing this alternative.
Action #2: Assess the Rollover IRA Opportunity
1. Understand the differences and benefits of
Traditional IRAs and Roth IRAs.
Just as employee contributions to certain
retirement plans may be made as either pre-tax or
Roth contributions, contributions to IRAs can be
made as pre-tax Traditional IRA contributions or
Roth contributions. Nondeductible contributions
may also be made to a Traditional IRA. Both types
of IRAs offer flexible tax-planning opportunities;
you should understand the advantages and
disadvantages of each. The IRS has developed a
Traditional and Roth IRAs Comparison Chart that
you may find helpful.
IRA comparison chart:
http://www.irs.gov/Retirement-Plans/
Traditional-and-Roth-IRAs
2. Invest the time to learn more about the
rollover rules.
The options for moving money between different
types of retirement plans have become more
liberal over the years, allowing more opportunity
for individuals to roll over their retirement
assets. In response to the heavy volume of
rollover activity among retirement savings
arrangements, the IRS has developed a number
of resources and tools to assist taxpayers and
retirement professionals who may be involved
in these transactions. The IRS has developed
a chart illustrating the types of rollovers that
are permitted between the various types of
plans. As the chart illustrates, there are special
rules for certain types of retirement plans.
For example, an individual’s designated Roth
account in an employer’s plan may only be
rolled over to another Roth plan or a Roth
IRA. If you know the type of plan holding your
clients’ retirement assets, you can obtain a quick
snapshot of the types of plans that may accept
a rollover of those assets using this IRS chart.
The chart, along with frequently asked questions
about rollovers and other information, is available
on the IRS website.
Rollover chart:
http://www.irs.gov/pub/irs-tege/rollover_
chart.pdf
Rollover FAQs:
http://www.irs.gov/Retirement-Plans/Plan-
Participant,-Employee/Retirement-Topics---
Rollovers-of-Retirement-Plan-Distributions
3. Evaluate the role of IRA rollovers in your
business model.
If you are not currently pursuing rollovers in your
practice, you may want to review whether there
is an opportunity to add IRA rollover support to
your business model, depending upon your role
with respect to the retirement plans you support.
As a result of the aging baby boomer population,
the volume of IRA rollovers is expected to
increase. And IRAs are a key component of many
retirement income strategies. If you provide IRA
investment support today for clients, be sure to
inquire about employer retirement plans that may
have rollover potential.
If you decide to pursue rollovers, you will need to
determine the impact on any fiduciary services
you provide (See Action #1). You will also need to
pay close attention to any legislative or regulatory
developments on the definition of fiduciary so
you understand how potential rule changes can
impact your business model.
As you evaluate your rollover services, include
a review of the broader rollover services that
may be appropriate for your clients. For example,
many plans have adopted a plan feature that
enables the plan sponsor to distribute balances
of not more than $5,000 owned by former
employees. If these mandatory distributions are
greater than $1,000 (but not more than $5,000),
8. 8
IRAS & THE ERISA FIDUCIARY RULES
the balance may be distributed from the
plan but must be rolled to an IRA, unless the
former participant elects a different option.
These rollovers are often referred to as “automatic
rollovers.” This feature can help plan sponsors
control plan costs by reducing the burden of
administering these small balances and tracking
terminated employees with small balances.
It is important to understand the scope of
mandatory distribution and automatic rollover
services available through your network
of service providers.
MG Trust, a Broadridge Company, offers a wide
range of IRA services, including administration
of automatic rollovers. To learn more about MG
Trust’s IRA services contact Janet Moore at
+1 720 956 5445 or janet.moore@broadridge.com.
Broadridge’s Marketing Communications
solutions group also provides a platform for client
communications. These offerings include paper
statements, e-delivery, confirms, enrollment kits,
storage and more. To learn more about these
services contact Broadridge at +1 888 237 1900.
Action #3: Monitor New Developments
Staying abreast of legislative and regulatory
developments is critical to the success of any
advisor working in the retirement industry. This
is especially true with respect to the evolving
guidance regarding the ERISA fiduciary definition
and IRA rollovers. Listed below are three
resources that you may want to tap into.
1. Matrix webinars & updates
As discussed throughout the Practice Guide,
the fiduciary issues are in a state of flux. Matrix
will be monitoring these issues carefully and
anticipates upcoming webinars and articles
as new developments occur. Watch for emails
from Matrix with details on webinars and other
materials. To get on the Matrix email list for
updates, contact the Matrix advisor help desk at
+1 866 935 6824.
In the meantime, you can stay up-to-date on
fiduciary issues by accessing the free resources
referenced in 2 and 3 below.
2. DOL newsletter
The best resource for staying current with
regulatory developments on fiduciary issues is
the DOL itself. The Assistant Secretary for the
Employee Benefits Security Administration at the
DOL provides a bi-weekly newsletter covering the
DOL’s initiatives on a variety of topics, including
the anticipated fiduciary regulations. Subscribe to
this newsletter, Before It’s Too Late: A Retirement
Security Update From Assistant Secretary Phyllis C.
Borzi, to receive first-hand information.
To subscribe to the newsletter, go to:
https://public.govdelivery.com/accounts/
USDOL/subscriber/new?topic_id=USDOL_422
3. GAO report on rollovers
If you haven’t reviewed the Government
Accountability Office (GAO) report on rollovers,
401(k) Plans: Labor and IRS Could Improve the
Rollover Process for Participants, you may want
to learn more about what the GAO found when
they posed as consumers and contacted service
providers to obtain information about retirement
plan distribution options. The GAO conducted
the study to identify challenges participants may
face in understanding their distribution options
and implementing rollovers.
You can access the GAO report at
http://www.gao.gov/assets/660/652881.pdf
4. Congressional letter to acting DOL
Secretary Seth Harris
The June 14, 2013 letter from members
of the Congressional Black Caucus and the
Congressional Hispanic Caucus to acting
Department of Labor Secretary Seth Harris raised
concerns about the DOL’s re-proposal of the
fiduciary definition regulations. This letter
is one example of the criticism certain members
of Congress have directed toward the DOL’s
fiduciary initiative.
You can obtain a copy of the letter at
www.financialservices.org/uploadedFiles/FSI-
Letter-to-DOL-on-Fiduciary-Redefinition-2013.
pdf