Regulatory Outlook | 09.15.21
More Rollovers May Soon Be Held to a Fiduciary Standard
The DOL has prioritized rolling over assets from a plan to an IRA given swelling numbers of retirees, surging growth in IRA assets, and an outdated regulatory framework. The department intends to propose rules to bring the framework into line with guidance from the Biden administration, which may hold more advisors to a fiduciary standard when recommending rollovers to investors, starting in December. An FAQ states that advisors and firms can still receive compensation that might otherwise be designated a conflict of interest, including with regard to rollover recommendations, if they comply with impartial conduct standards. They must also relay in writing to the client the services to be provided and any material conflicts of interest, and list reasons that a rollover recommendation is in the client's best interest; moreover, they must mitigate conflicts of interest.
Read the full article on Barron's.