What Advisors Need to Know About New Disclosure Requirements

The Employee Retirement Income Security Act (ERISA) requires plan sponsors and other plan fiduciaries to act prudently and solely in the interest of plan participants when selecting and monitoring service providers and plan investments. Service provider arrangements and compensation in employee benefit plans have become increasingly complex.

Get access to this article and thousands more...

All Financial Planning articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to exclusive industry white paper downloads, web seminars, blog discussions, the iPad App, CE Exams, and conference discounts. Qualified members may also choose to receive our free monthly magazine and any of our daily or weekly e-newsletters covering the latest breaking news, opinions from industry leaders, developing trends and growth strategies.

Already Registered?

Comments (1)
Just more typical big government. I wrote this in response to a Finra article. Just take out Finra and insert DOL:

There are several issues with Finra that need to be addressed. One seems to be the over burdensome regulations they keep layering on top of one another. The most recent being the new suitability rules. What I love about these new rules is that when you look at the executives of Finra they are either what appears to be lawyers who couldn't handle lawyering or ex-government regulators. What that tells me is that none of those people have any real world experience when it comes to dealing with the people that matter, the clients. All you seem to see now is Finra pushing more regs in order to justify their fees, fines and existence. More regs means more fines. So based on their lack of apparent ability to run their own business efficiently, they are going to try and live off the backs of real people in the real world doing real work. And they will say that they exist to protect the clients and that is why they are needed. Here is the problem; neither Finra nor any other regulator will be able to protect all clients. Reason being is pretty simple. If someone is intent on defrauding someone, they will find a way to do it. What Finra cant regulate is the human element. No one can regulate the human element. As a former police officer myself, I know that there are thousands of laws telling us what we can not do. But do you think Robber really cares about some words written on a piece of paper telling him he can't rob someone? Madoff knew the rules and do you think he cared? The answer in both of those situations is, obviously not. Rules and regs do not mean anything to those people. The regs now are only hampering good reps from efficiently helping their clients. We do not need more made up rules so Finra can levy more fines, so they can stay afloat. I mean that is really what it comes down, Finra needs revenue to stay viable. For a quasi "private non-profit organization" that Finra is supposed to be, I find it interesting that they have an investment account and 13 people making over $1,000,000 a year each in comp. So now when I see that, it seems that they are upping their fees and fines in a more self serving manner. Which again either way you look at it, it is about the money. I am very disappointed in the broker/dealer community. I would have thought that the larger houses would have come together, go to Finra and to the SEC about Finra and say enough is enough. Quite frankly, the B/D's know the rules and can enforce the rules on their on reps, so why do we really need Finra anymore? The B/D's of today should maybe be able to police themselves. They all have a team of lawyers that can interpret rules. They all know right from wrong. Like with any business there are going to be a couple bad apples and that you can not stop.
Posted by J H | Wednesday, September 05 2012 at 2:08PM ET
Add Your Comments:
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.

Already a subscriber? Log in here