Fiduciary Links: Comments related to the SEC’s Fiduciary Rulemaking have arrived
Posted by Rich Lynch on July 08, 2013
>>>>Comments related to the SEC’s request for information on “Duties of Brokers, Dealers, and Investment Advisers,” i.e., the much-awaited, potentially harmonized fiduciary standard for brokers and advisers, are the big story of the week as the SEC’s comment period came to a close on Friday. As expected, there is a divergence of opinions and long response list that has continued to grow throughout the day, but most responses are light on data to support their point of view. The SEC was particularly interested in data that could be used to support their cost benefit analysis. Coverage of comments are linked below. Stay tuned for a post later this week summarizing fi360’s response.
>>>>A Planadviser article from last week alerted us to a behavioral finance paper, “Mitigating Behavioral Risk,” by Alison Salka, corporate vice president of retirement research at LIMRA. Salka submits that behavioral finance can help reduce retirement risk and suggests that behavioral risk should be added to and regularly addressed along with the three commonly referenced risks of retirement – longevity, inflation, and marketplace risk. As evidence, she points out that behavioral finance has already been used effectively with the addition of auto retirement plan features designed to overcome participant inertia; with target date funds to address risk-adverse investors; and in reducing the number of investment choices because people get overwhelmed when the numbers of choices is too large.
Now on to the rest of the best links from last week:
News and columns from the leading trade, consumer, and mainstream media:
- How social-media platforms stack up for the advice business [InvestmentNews]
- Barbara Roper takes aim at upcoming Reg D rule adoption [InvestmentNews]
- Passive target date fund sales surpass active TDFs for first time [InvestmentNews]
- AIFA Designee Glenn Kautt looks at how Tussey v. ABB alters the fiduciary landscape for advisors [Financial Planning]
- Advisors see improving economy, eventually. [Wealth Management]
- Finding work-life balance even when you can't unplus is essential for advisors with busy clients [Financial Planning]
- Millennials neglact retirement planning - nearly 70% have no retirement plan according to a new survey [Financial Planning]
- A new report finds big growth industrywide in multifamily offices, and there is an increasing focus on business development [Financial Planning]
From the organizations/associations/government/academia:
- CEFEX renews 25 registrations for firms over the past quarter. You can view all registered firms here. [CEFEX]
- A study shows advisers, clients benefit from a fiduciary standard without reduced access to services or increase in cost. [Financial Planning Coalition] Read the InvestmentNews coverage here.
- SIFMA submits cost estimates to SEC on fiduciary rulemaking. [SIFMA] Read the Investment News article here.
- Timothy B. Henseler named Director of the SEC's Office of Legislative and Intergovernmental affairs. [SEC]
From the blogs:
- Brian Hamburger, a top RIA lawyer, explained to the SEC why 'harmony' is a misnomer, and the price of it its false spin is paid by investors. [RIABiz]
- Trending topics for ERISA plan sponsors. [FIduciaryNews]
- Top 10 reading list, including Chuck Jaffe's, "No Such Thing as Risk Free Investments". [The Investment Fiduciary]
- The gears that drive a 401(k) to success [Fiduciary News]
Articles your clients are reading (or should be):
- Don't shoot yourself in the foot over 401(k) fees. This guest post from Pat Murphy, author of Feeling Financial, talks about the steps you can take that will make a difference in your life. [The Chicago Financial Planner]
- When should you claim Social Security? A look at the sometimes confusing benefits, and drawbacks, to retiring at any age. [USNews]
- Why you should give annuities a serious look. [USNews]
Have a link we missed? Leave them in the comments section or email us at firstname.lastname@example.org. For more of the best links during the week, make sure you follow us on Twitter.