Skip to content

DOL Fiduciary News: February 16, 2018

Please Note:

These links will take you directly to the homepage of the website that features the article.

To reach the article directly, copy and paste the article title into the search feature on the homepage of the publication website.

Scottrade Charged Under DOL Fiduciary Rule in Massachusetts

ThinkAdvisor; February 15, 2018

The Massachusetts Securities Division charged Scottrade on Thursday with violating the impartial conduct standards laid out in the Labor Department’s fiduciary rule, which took effect on June 9, 2017.

Commonwealth Secretary William Galvin, the state’s top securities regulator, charged the broker-dealer with “dishonest and unethical activity and failure to supervise” for conducting sales contests that violated Labor’s impartial conduct standards.  

Despite Scottrade adopting a rule to adhere to the impartial conduct standards that prohibited sales quotas, appraisals, bonuses, contests and other incentives for retirement or prospective retirement account clients, the broker-dealer “held at least two sales contests which included retirement assets” after June 9, the complaint states. 

Lau Launches Network to Bring RIAs Commission-Free Insurance Products 

Financial Advisor; February 15, 2018

The co-creator of an RIA-friendly variable annuity is planning to launch an entire series of commission-free insurance products for fiduciary advisors.

David Lau, a former Jefferson National executive, founded DPL Financial Partners as an RIA insurance network to connect the nation’s top insurance carriers with fiduciary advisors.

“Insurance is an important piece to a financial plan,” said Lau in an e-mailed comment. “RIAs have to refer their clients to an outside insurance professional who will sell them a commissioned insurance product. ...  We are bringing low-cost, commission-free products to market to help them manage their clients insurance in a fashion that is aligned with their fee-only business model.”

Launched six months ago, DPL will offer products including variable annuities, variable life insurance, universal life insurance, long-term-care coverage and Medicare supplemental insurance.

DPL will provide product- and carrier-agnostic assistance to advisors and work with insurance carriers to create and support additional commission-free products.

The firm is working with eight carriers, including TIAA, Axa, Great American, Great West, Integrity and Security Benefit, with plans to add more in the future, according to the company. 

Did you accomplish the goal of your visit to our site?

Yes No