Monday, November 28, 2011

Investigations into improper advice

Ari Rosenbaum's always informational blog recently brought my attention to an article from Drinker Biddle detailing recent "investigations of broker-dealers related to their services to ERISA retirement plans."

The main points are:
  1. That brokers and RIAs can act as plan fiduciaries even if they don't acknowledge that they are acting as plan fiduciaries, such as by giving individualized advice.
  2. That these same brokers and RIAs could give prohibited advice by recommending a fund when, for instance, they receive "soft dollar" payments.
We think good data can be a part of helping brokers and RIAs show that the funds that they recommend to plans can be trusted.  And we think that plan sponsors can use good data to ensure that the advice they get from brokers and RIAs.

No comments:

Post a Comment