The US Labor Department will release an updated fiduciary rule in September. The department adopted a fiduciary rule in 2016 to replace one enacted in 1975, but the rule became vacated by the US Court of Appeals for the 5th Circuit.
A survey from Capital One found that many employees with access to an employer-sponsored retirement plan don't participate because they believe they don't make enough to contribute. However, educating individuals about tax benefits and fees could help encourage participation, says Stuart Robertson of Capital One Advisors.
Many retail investors lack the financial literacy to understand distinctions between broker-dealers and investment advisors, according to a report from the Securities and Exchange Commission's Office of the Investor Advocate and RAND. Investors who are the most financially literate are also the most likely to obtain professional investment advice, the report states.
The final rule on the Securities and Exchange Commission's advice-standards package for firms and investment advisors will be issued in September, according to the agency's agenda. The package includes changes to Form Customer Relationship Summary, amendments to Form ADV and other disclosures regarding communications and restrictions.
A working group of the National Association of Insurance Commissioners couldn't decide during a recent conference call whether to approve a proposal to allow the use of data from indexes less than 10 years old to illustrate the likely performance of annuities. The working group decided to take up the matter again in two weeks.
New IRS guidelines overcome a potential obstacle for issuers of variable annuity and life insurance contracts that want to invest in "uniform mortgage-backed securities." The IRS arranged to have the Federal Housing Finance Agency publish a "deemed-issuance ratio" that insurers can use to see how UMBS purchases could affect account diversification.
Goldman Sachs economists have repeated their expectation the Federal Reserve will increase interest rates five times through the end of next year, two more than what markets have priced in. Goldman says the Fed will have to take firm steps to tighten monetary policy to prevent the economy from overheating.
Advisors have numerous networks for communicating digitally with clients, improving access but raising compliance issues. Technology most firms employ to track and store electronic communication is outdated, says Marty Colburn, former executive vice president and chief technology officer at the Financial Industry Regulatory Authority.
The growth of an independent advisory firm eventually forces owners to decide whether they want to remain a manager or work as a full-time advisor and move someone else to the helm, consultant Angie Herbers writes. Being a leader requires asking questions and influencing employees to perform at the highest level, she notes.
The NAIFA Life and Annuity Certified Professionals (LACP) certification serves consumers by recognizing financial professionals with a mark of distinction for their product knowledge, consultative sales process and compliance to ethical, legal and regulatory requirements. LACP practitioners are held to a standard of excellence that defines and differentiates them from their peers and to the clients they serve. Learn more here.