The new fiduciary standard is currently one of the most hotly debated issues resulting from the Wall Street Reform and Consumer Protection Act of 2010 (the Dodd-Frank Act). The controversy in question is being proposed by the Department of Labor to expand its definition of who is a fiduciary, and those changes are going to be shocking to the current way some representatives and advisers conduct their business. As regulatory reform is poised to change the playing field, it is important to insure that representatives understand what distinguishes a fiduciary from a non-fiduciary, and how the Dodd-Frank Act will standardize the level of care administered by fiduciaries and non-fiduciaries.
This month's excerpt, "The Department of Labor's New Fiduciary Rule," is taken from the FIRE Solutions Continuing Education course, ERISA - Retirement Plans and the Fiduciary Standard. The article examines the key issues surrounding the debate over the new fiduciary standards and also focuses on how coming changes to the existing fiduciary rules will affect the way that retail and institutional sales reps currently do business.
Click here for your copy of "The Department of Labor's New Fiduciary Role"
About the Course
ERISA - Retirement Plans and the Fiduciary Standard discusses what it means to be a fiduciary in the eyes of ERISA and Department of Labor and how this differs from the SEC's definition. The course explores the different standards that apply to investment adviser representatives and registered reps with broker/dealers, and how the rules that mandate who must act as a fiduciary may be changing. The top responsibilities of investment advisers acting as fiduciaries are listed as well as the deficiencies most commonly found in SEC examinations of investment advisers.
In addition, the course explains the current regulatory focus on ERISA retirement plans and IRAs and what firms and reps should do to stay in compliance and prepare for potential regulatory changes. Finally, ERISA - Retirement Plans and the Fiduciary Standard concludes with a look at some conflicts of interest and prohibited transactions that can arise in the course of business, and how failing to deal with them properly can result in disciplinary actions.