RIA 401(k) plan specialists will have a“great advantage” negotiating the vast complexities of theDepartment of Labor’s fiduciary rule, according to Fred Reish,chair of the financial services ERISA Team at Drinker Biddle &Reath.
The new rule will make any recommendation to roll assets from a401(k) to an IRA a fiduciary act. The rule’s Best Interest ContractExemption requires all recommended advice on plan assets and IRAsto be given in the best interests of investors.
For those RIAs who already charge a level fee—a set percentagebased on plan assets—and receive no variable conversation orindirect compensation from 12b-1 fees, complying with the rule willbe less onerous.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
