Search
 

RIAs not completely off the hook with DOL

RIAs advising 401(k) plans that dont have broker-dealer affiliations or revenue relationships with proprietary investment products will likely feel little impact from the Department of Labors proposed fiduciary rule.

By Nick Thornton | Updated on May 26, 2015
Getty Images.

RIAs advising 401(k) plans that don’t have broker-dealer affiliations or revenue relationships with proprietary investment products will likely feel little impact from the Department of Labor’s proposed fiduciary rule, according to attorneys at Drinker Biddle.

That’s because typically, RIAs acknowledge their fiduciary status and are compensated on a fee basis. The proposal’s Best Interest Contract Exemption will allow advisors to recommend commission-based products so long as the advisor reveals both the costs of those products to investors and their intention to work as a fiduciary, or solely in the best interest of plan participants.

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Nick Thornton

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.

More from this author

Recommended Stories

BenefitsPRO

Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2024 ALM Global, LLC. All Rights Reserved.