CFDD Marketing Commentary
8/26/2010--BDs who permit generalists to provide plan and/or participant level advice while denying their fiduciary status must be prepared for an increasingly litigious ERISA marketplace or adopt new business practices to reduce risk. Most know they need to change, but they are in the wealth management business and don’t really know what to do. Enforcement budgets have increased and the regulators fully intend to exercise their enforcement powers over the advisor community. Sponsors will eventually dismiss non-fiduciary advisors and those who fail to adapt could lose business as well as become entangled in a web of prohibited transactions. It may take a few years, but rather than give up their retirement plans business to independents and other specialists who are not hindered by slow to change organizations, some of the BDs will eventually adapt.
CFDD Retirement Plans Commentary
8/26/2010--In light of the new 408b-2 disclosure rules, pending investment advice regulations, proposed 12b-1 fee changes, Form 5500 Schedule C disclosure and evolving standards, the days of servicing retirement plans as a non- fiduciary advisor appear to be coming to a close. Suffering from a 2008 bear market hangover, non retirement plan priorities, rising costs, the new Schedule C, a lean staff and day-to-day challenges, the BD community faces major challenges in adapting to the evolving retirement plans market. Although most wirehouses allow a small group of dually registered, successful and highly qualified retirement plan specialists to acknowledge their fiduciary status in a written agreement that specifically provides for plan level advice, there are few restrictions that prevent generalists from selling retirement plans.
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To participate in the CFDD’s October 6-8, 2010 Advisor Conference Retirement Income Smackdown Case Study:
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