Many financial advisers are still grappling with how the Pension Protection Act permits them to give advice to 401(k) plans, Investment News reports. And a good majority doesn’t want to move to fee-based accounts from commissions.
Some advisers mistakenly believe the law allows them to still accept trailing commissions and revenue-sharing, and it does not, said Jason Roberts, an attorney with Edgerton & Weaver who has created a website to clarify the Pension Protection Act, ppa-law.com.
Besides not being comfortable with the idea of providing advice, many advisers are unclear about how they will be paid, said Louis S. Harvey, president of Dalbar. Advisers are trying to find a way around being precluded from receiving a commission, Harvey said. “The truth of the matter is very simple,” he said. “You have to be getting level compensation.”
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.