Fiduciary Links: GAO Report Brings Attention to IRA Rollovers
Posted by fi360 Team on April 08, 2013
>>>>IRA rollovers were the big, fiduciary-related story of last week, as the GAO released a report suggesting many providers were recommending IRA rollovers for participants leaving a company without much consideration to the particular facts and circumstances related of that investor. In most cases, participants have very little information available to them that provides straightforward pros and cons of their available options. In addition, they found that the process of a plan-to-plan rollover from the old company to a new company’s 401(k) plan presents some obstacles.
Among the suggestions of the report is to make the plan-to-plan process simpler for participants, utilize more straightforward disclosure, and for DOL to move forward with its new definition of fiduciary, including addressing IRA rollovers. This will be a topic worth tracking as IRAs continue to get attention from government and consumer groups. As always, InvestmentNews has coverage, and supported the GAO recommendations in an editorial.
>>>>PensionRiskMatters.com, a blog focusing on risk management, celebrates its 7th anniversary this year. The author, Dr. Susan Mangiero, will be speaking at the upcoming fi360 Conference on due diligence for alternative investments. She is also author of the book Risk Management for Pensions, Endowments, and Foundations.
News and columns from the leading trade, consumer, and mainstream media:
- A former employee of FINRA filed a suit in federal court, claiming he was fired after he detected a flaw in the ranking-system. He said large broker-dealers were allowed to circumvent an SEC rule. [InvestmentNews]
- Some advisers believe that an Obama tax break cap would hurt clients, and that a 28% limit is not a helpful policy for jobs or growth. [InvestmentNews]
- Many Wall Street institutions are chasing independent financial advisers, but it's not an easy task to win trust. [InvestmentNews]
- The GAO claims that workers are hurt when they roll their 401(k) plans to IRAs. [InvestmentNews]
- Investors faith in advisers soared after financial crisis. [InvestmentNews]
- The SEC recently ruled that as long as companies are clear to investors about plans for social media, it is OK to use it to communicate with shareholders. [InvestmentNews]
- One of the key fiduciary concepts is that fees and expenses must be reasonable to the value they provide. But our experience is that many advisors aren’t sure how their own pricing stacks up. In a new white paper, Pusateri Consulting addresses this with a suggested exercise for evaluating your pricing.[AdvisorOne]
From the organizations/associations/government/academia:
- Improvements needed in the SEC's internal controls and accounting procedures. [GAO]
- Social media is OK for company announcements, if advisors are alerted. [SEC]
- Assess fiduciary risk in DC plans [NAPANet]
From the blogs:
- Learn five fiduciary facts the DOL wants every 401(k) plan sponsor to know. [FiduciaryNews]
- The Pension Risk Matters blog celebrates it's 7th anniversary. [PensionRiskMatters]
Articles your clients are reading (or should be):
- Learn how you may be able to get higher returns on your 401(k). [USNews]
- Here are a few questions to ask a financial planner before investing. [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.
