FINRA issued a notice this week reminding firms of their responsibilities when it comes to recommending a rollover or transfer of assets from an employer-sponsored retirement plan to an IRA or marketing IRAs and associated services.
The organization, which is the largest independent securities regulator in the U.S., warned that it will make reviewing firm practices in this area a top priority in 2014.
It pointed out that a recommendation to a client to roll over plan assets into an IRA rather than keeping assets in a previous employer's plan should be based on an investor's individual needs and circumstances. It should take into account investment options, fees and expenses, services, penalty-free withdrawals, required minimum distributions and employer stock.
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