One thing will be important for firms to do, whether a rollover request leads to a rollover or not. (Photo: Shutterstock)
Broker-dealers can be expected to err on the side of caution when recommending 401(k) rollovers to IRAs when the Securities and Exchange Commission's Regulation Best Interest becomes the new standard of care come July 2020.
“I think firms will come out of the gates very conservatively,” said Jason Roberts, an ERISA attorney and CEO of the Pension Resource Institute, a compliance consultancy to financial institutions and retirement plan sponsors.
In its final rule, the SEC made rollover recommendations subject to Reg BI's Care Obligation, which requires brokers to place the best interests of investors before their own when handling qualified retirement plan assets.
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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.
