Fiduciary Links: FINRA, the SRO Bill and Other Updates
Posted by Kathy Stewar on February 11, 2013
>>>>During the last two years, FINRA has spent over $2 million lobbying Congress, largely in support of bill that would establish an independent SRO for investment advisors. For that reason, the reports last week that suggested FINRA and other advocates of the SRO bill may be moving on from the issue came as something of a surprise. However, indications now are that it probably isn’t so simple.
“It's good news that they're not working the bill on Capitol Hill at this time,” fi360’s Duane Thompson told InvestmentNews. “It doesn't mean they're going to forget about it or walk away completely.”
IN’s updated story indicates that FINRA won’t abandon the issue completely and another report suggests they may be looking to find a champion in the Senate.
>>>>With more fees and services data available to plan sponsors due to the 408(b)(2) disclosure rules now in effect, many predicted a lot of movement as plans reacted. This has been true with large plans that have significant resources and motivation to seek out the best deals possible. For smaller plans, however, this has not been the case. New research indicates that most small employers are reluctant to change unless necessary, due to the effort and disruption involved. This, of course, raises the interesting question of what is an advisor’s liability if a plan sponsor elects not to make any changes, even if a better deal is theoretically possible?
>>>>As regulators prepare to testify regarding progress under Dodd Frank to the Senate banking committee this week, it appears that rulemaking trudges slowly forward. According to statistics related to Dodd-Frank released by the Davis Polk law firm, there are 398 rules required to be enacted. Of those, over 37% have been finalized and over 30% yet to be proposed. The firm also reported that about 60% of the rules are running behind their stated deadlines for enactment.
The Senate hearing is scheduled for Thursday.
Now on to the rest of the best links of the week:
News and columns from the leading trade, consumer, and mainstream media:
- Retirement planning can hurt health [InvestmentNews]
- Finra’s cease-fire on RIA oversight [InvestmentNews]
- Finra shifts SRO fight to Senate, as House effort falters [AdvisorOne]
- Small-plan sponsors hesitate on fee disclosure rule [InvestmentNews]
- ICI Survey: Americans back tax breaks for retirement savings [InvestmentNews]
- Wirehouses go big on tech [InvestmentNews]
- A social-media-sharing guide for financial advisers [InvestmentNews]
- Obama calls on Congress to avert sequestration, avoid big cuts [InvestmentNews]
- Clients trust advisers, advisory firms, not so much [InvestmentNews]
- Top Regulators to Testify on Dodd-Frank Progress [AdvisorOne]
- 5 Strategies to Manage Growth [AdvisorOne]
- Advisors Big and Small Hitch on to Branding Trend [AdvisorOne]
- John Bogle: Forget fiscal cliff, worry about nuclear proliferation [AdvisorOne]
- Young(er) Advisors + Old(er) Advisors = (More) Successful Advisors [AdvisorOne]
- Will your TDFs stand up in an economic storm? [AdvisorOne]
- Nonprofit fundraising eked out 2% growth in 2012: Blackbaud [AdvisorOne]
- Can training programs be saved? [WealthManagement]
- SEC Nominee White’s disclosure report shows possible conflicts [FinancialPlanning]
From the blogs
- Clients get two-fer when they postpone Social Security [Retirement 2.0]
- Seven simple saving secrets every 401k Investor should know [FiduciaryNews]
- The 5 biggest errors of intellectual omission by RIAs, in fact, most advisors [RIABiz]
From the organizations/associations/government/academia:
- Aseel Rabie joins SIFMA as Managing Director and Associate General Counsel [SIFMA]
- Dodd-Frank Progress report [Davis-Polk]
Articles your clients are reading (or should be):
- Advisers recommend direct college savings plans over those paying a commission [InvestmentNews]
- How to fix social security while averting fiscal ruin: Pozen [AdvisorOne]
- The 'last' estate plan [All things financial planning]
- Should you delay taking social security? [FiGuide]
- Boomer retirement advice to kids: Don't do what I did [USNews]
Have a link we missed? Leave them in the comments section or email us at blog@fi360.com. For more of the best links during the week, make sure you follow us on Twitter.
