08.15.18
SEC Reg BI Must Include Rollovers: Morningstar
by: Melanie Waddell
The SEC's proposed Regulation Best Interest (Reg BI) for brokers must be revised to ensure that rollover recommendations are in an investor's best interest, according to a comment letter from Morningstar. Aron Szapiro, director of policy research for Morningstar, wrote that Reg BI needs to identify rollovers “as specifically requiring a prudent process and documentation to ensure they are in retirement investors' best interests.” Rollovers, Szapiro wrote, particularly from retirement accounts covered by the Employee Retirement Income Security Act of 1974, “require additional scrutiny because most financial professionals have an incentive to recommend that clients roll over their assets.”
Read the full article on Think Advisor