DOL Fiduciary News: June 14, 2016
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Jackson National Eyes Fee-Only Variable Annuity
InsuranceNewsNet; June 13, 2016
Jackson National Life Insurance, the top seller of variable annuities, is readying a fee-only VA to be distributed through broker-dealers affiliated with a registered investment advisor, according to a government filing.
Complexities around the legal and compliance costs of managing commission-based VAs are expected to put pressure on life and annuity companies to develop more fee-based products in the wake of new Department of Labor regulations.
Fiduciary duty finally hits mainstream — and Main Street
InvestmentNews (blog); June 13, 2016 @ 1:57 pm
For most of the last six years, the battle over a Labor Department rule to raise investment advice standards for retirement accounts has been waged inside the Beltway in Washington.
Attacking and defending the rule has taken place in the capital's hearing rooms, conference rooms and backrooms — although they're no longer smoked-filled.
IRA rollover under DoL rule: Where to start?
Financial Planning; June 10 2016, 1:45pm EDT
ORLANDO, Fla. – Many advisers are having a problem figuring out where to start preparing for the impending DoL fiduciary rule. When it comes to IRA rollovers, industry experts believe they already have the answer.
“How do you document in a sufficient manner that the recommendation you made was the right thing for the client?” asked Theresa Fry, manager of IRA and retirement plans at Benjamin F. Edwards speaking at Pershing’s Insite conference. “I think that’s a huge challenge.”
401(k)s Not Suitable Retirement Income Vehicles
PLANSPONSOR; June 13, 2016
“Structural restrictions and limited adoption of in-plan income products prevent defined contribution plans from being a suitable vehicle for income,” states Bing Waldert, Managing Director, U.S. Research at Cerulli.
“The Cerulli Edge – U.S. Edition, June 2016 Issue” notes that recent policy activity includes Notice 2014–66, issued in October 2014 by the Internal Revenue Service (IRS) and the Department of Labor (DOL), clarifying that a defined contribution (DC) plan sponsor would not be held responsible for selecting the annuity provider that was incorporated into a target-date fund, but only partially addressed the annuity purchase safe harbor regulations.