2020 has become the year of adaptation. We want to thank everyone who tuned in our webinar series in lieu of the annual Fi360 Conference. We may not have had the chance to shake your hand and catch up face-to-face this year, but we made sure to fulfill our promise of providing you with the latest insights on the fiduciary landscape. Below are the sessions from the 2020 Conference.
One of the annual traditions of the Fi360 Conference is the “State of the Fiduciary” address that kicks off each conference. It is an update on regulatory and best practices trends for fiduciaries and all things impacting the conduct standards for financial services providers. In lieu of our in-person event, join us the virtual version of that speech as Blaine Aikin and Duane Thompson discuss the most pressing issues for fiduciaries in 2020. It was already looking like a monumental year with Reg BI compliance on the horizon and various states introducing their own fiduciary rules. Now with markets in turmoil and social restrictions in place, advisors have even more to consider as they work to best support their clients.
Blaine Aikin, Fiduciary Subject Matter Expert
Duane Thompson, Senior Policy Analyst
Blaine Aikin and Michael Kitces will discuss the status and impact of the SEC's Regulation Best Interest, an update on XY Planning Network's legal challenge to the regulation, and other regulatory and court actions that are impacting the fiduciary standard in 2020. Then, our panelists will look beyond compliance to discuss how firms and advisors are adapting to the current environment and the future of investment advice as a profession.
Blaine Aikin, AIFA®, CFA, CFP®, Fiduciary Subject Matter Expert
Michael Kitces, Head of Planning Strategy, Buckingham Wealth Partners
Slides not available
Last year the SEC issued its Regulation Best Interest, which enhanced the duty of care, management of conflicts and disclosures for broker-dealers. At the same time, the SEC issued the Interpretation Regarding Standard of Conduct for Investment Advisers. The Interpretation for investment advisers nominally restates and clarifies the standard of care and the rules about disclosures and conflicts, but in actuality, it increases the requirements for RIAs. This program explains the new rules and compares and contrasts their requirements.
Fred Reish, Partner, Faegre Drinker Biddle & Reath
The SEC has imposed new disclosure requirements on investment advisers with the new ADV Part 3, also known as the Form CRS. The 178 page regulation imposes strict requirements about the contents of the new form, which cannot be longer than 2 pages. It must be provided to all existing clients and new clients beginning June 30, 2020. In addition, the SEC has expanded its definition of conflicts and required disclosures for conflicts, for example, through the SEC SCSD Initiative and the Conflicts FAQs.
Fred Reish, Partner, Faegre Drinker Biddle & Reath
For advisors working with or considering offering HSA investment programs, they must be aware of their duties and obligations under ERISA. This webinar will feature three ERISA attorneys who will speak on the advisor’s role when selling HSAs and providing fund line-ups as well as trends for broker-dealers and their compliance consideration.
Ann Brisk, Senior Vice President, HSA Bank (Moderator)
Shelby George, CEO, Perspective Partners
Roberta Casper Watson, Head of Welfare Benefits Department, The Wagner Law Group
Michael Wieber, Partner, Quarles & Brady LLP
With all the regulatory activity around Multiple Employer Plans (MEPs), it’s no wonder everyone is thinking about the best ways to incorporate them into their business strategy, especially in the small plan market. But while MEPs have their place, there’s a lot to consider both from the advisor and plan sponsor’s perspectives. Now that we have a better view into what the regulatory landscape looks like for MEPs, let’s discuss the opportunities they present for your business.
Allison Brecher, General Counsel & Chief Privacy Officer, Vestwell
Joshua Forstater, SVP - Strategic Partnerships, Vestwell
Around 50 percent of the nation’s nonprofits are operating with less than one month’s cash reserves, according to GuideStar. Some 7 – 8 percent of U.S. nonprofits are technically insolvent, with liabilities exceeding assets. Our own experience suggests that Ventura County’s percentage of insolvent nonprofits is even higher than the national average. While the financial health of nonprofits vary across sectors, the one constant theme as we’ve helped organizations grapple with their unfortunate financial realities is the disbelief and dismay when board members and internal leadership understand the true nature of their financial positions. We often hear, “But, we’ve had clean audits for years and years," or, "We've worked with our Investment Consultant for years, why didn't he say anything?" Unfortunately, we find that by the time these organizations come to understand their predicament it is frequently too late for them climb out of their poor financial condition, seriously impacting their abilities to fulfill their missions and have positive change on society. It also compromises their ability to honor donor intent and donor restrictions. In this session, we will discuss:
- How AIFA® and AIF® Designees, CPAs and attorneys can use their expertise to improve the financial health of their clients and organizations they serve in volunteer/ director roles
- Clean audit opinions and what that really means
- Unique nonprofit characteristics to consider and contemplate
- Fiduciary responsibility and the duty of care, duty of loyalty, and duty of obedience
- An example of how things can go wrong
Vanessa Bechtel, President & CEO, Ventura County Community Foundation
Bonnie Gilles, Chief Financial Officer, Ventura County Community Foundation
This session will describe how a CEFEX certified firm, Smart Investor, helped the Paskenta Band of Nomlaki Indians Tribal Council establish excellent fiduciary processes and ultimately become CEFEX certified as an Investment Steward. This is a story of redemption and how the discovery of fraud became the trigger for seeking excellence. Blaine Aikin will present the CEFEX certificate to the Paskenta Band.
Pat Mercier, Chief Financial Officer
Kate McBride, FiduciaryPath, LLC
Allan Henriques, Smart Investor
How can financial advisors best build their reputation and grow their business? Through a survey of Fi360 members, the authors test the relative impact on financial advisor reported compensation of emphasizing and enacting 1) credibility, 2) reliability and 3) client-centricity. The results of the survey and practical implications for different types of financial advisors will be discussed.
A. Lynn Matthews, Ph.D., Wichita State University
In this presentation, we will provide an overview of recent market events while contextualizing the current environment with historical perspectives that may offer insights into how fiduciaries might responsibly navigate the volatility. In addition, we will highlight the importance of sticking to investment principles using empirical research reinforcing the benefits of diversification and a disciplined approach to asset allocation. Additionally, we will discuss how applying the right risk management framework is important when building portfolios for clients approaching retirement to help weather the storm of volatile markets.
Wes Crill, Ph.D., Vice President, Dimensional Fund Advisors
Serving the special needs community — including those living with special needs and disabilities, and their caregivers — is an extension of Voya’s vision to be America’s Retirement Company®. Voya has begun to shine a light on the issues that people living with special needs and disabilities and their families face, and we want to help bridge that gap of where individuals can go for help. We want to help financial professionals position themselves to make an impact in the lives of people with special needs as well as their families and caregivers by helping them think differently — and holistically — about planning for the future.
Matt Stagner, CFP, ChSNC, Sr. Special Needs Financial Planning Consultant, Voya
In these unprecedented circumstances, many of our clients are wondering how this market is affecting those investment classes traditionally held in retirement portfolios. . . will this be like the “Global Financial Crisis” of ’08, ’09? How is Stable Value faring in the current situation – what lessons did we learn last time and how has stable value performed recently? Is it doing what it was “designed” to do?
Tony Luna, CFA, Portfolio Manager & Head of Stable Value, T. Rowe Price
Bob Madore, Portfolio Manager, Stable Value, T. Rowe Price
Whitney H. Reid, CFA, Portfolio Specialist, T. Rowe Price
Michael Doshier, DC Strategist, T. Rowe Price
With M&A activity once again heating up during these unprecedented times, employers at companies that may be targets of an acquisition, as well as acquiring firms are seeking solutions relating to executive benefit and compensation programs during these transactions. An “employer’s promise to pay” deferred compensation or other non-qualified benefits to a highly compensated employee may be a contract right that avoids the complexities of ERISA. However, when it's time to pay, if the funds aren't there or the employer changes its mind (perhaps due to a change in ownership), the employee may be reduced to expensive litigation and an uncollectible judgment. Engaging a corporate trustee to establish a rabbi trust can provide some security against such a turn of events while offering other benefits to facilitate the administration of non-qualified plans. Let’s discuss how this works!
Michael W. Hlavin, CFP®, Matrix Financial Solutions, A Broadridge Company
Nancy D. Gray, CRSP, Matrix Financial Solutions, A Broadridge Company
This session will describe the basics of what auditors cover in a limited scope defined contribution plan audit. It will also focus on the most common errors found and ways to help your clients ensure that these errors are not happening in their plans.
Anne Morris, CPA
This session will cover the practical aspects of implementing and managing a cash balance plan from the decision to start one through the entire life cycle of the plan, including plan termination. Topics will include: plan design and implementation, investments, plan management through the business cycle, retirement and plan termination.
Rob Vidin, 2nd VP, Actuary, The Standard
The consolidation of the retirement plan advisory space began to take hold in 2019, with more and more firms selling to larger scaled players. To thrive in this changing environment, retirement advisory firm leaders should gain a full understanding of their firms relative to this evolving M&A marketplace. Retirement firm leaders should begin internally with a review of their key firm value drivers and corresponding gaps and liabilities. Externally firms will need to understand the impact of increasing consolidation on their ability to thrive and should have a business process in place for reviewing the marketplace for the best partnership options.
Dick Darian, Wise Rhino Group
Learn how the trends taking place in today’s markets may affect your practice. Emily Roland presents an award-winning look across key markets and asset classes, leveraging the insight of dozens of asset managers and investment research firms from John Hancock Investment Management’s dedicated in-house research team.
Emily R. Roland, CIMA, Co-Chief Investment Strategist, John Hancock Investment Management
This presentation will provide information that fiduciaries need in order to have the knowledge and competence to advise clients who have a child with a disability. Discussion will include a comparison of trusts and ABLE accounts with review of funding methods. Beware the Social Security Family Max which could reduce a child's benefit. And finally, plans for emergencies and the future; lessons learned when a family member was killed with no plan for their adult child.
Vivian Villers, CFP®, AIF®, CWS®, Sage Planning
In recent years, we’ve seen collective investment trusts (CITs) steadily increase their market share due to lower fees and generally lower costs when compared to mutual funds. New legislation may soon allow for CITs to become available to 403(b) plans, which would potentially aid in their continued growth. With this in mind, plan sponsors must consider the unique needs of their participants when selecting a glide path. In this webinar, we will discuss:
• An overview of the proposed bill allowing 403(b) plans to invest in CITs
• Target-date performance throughout the Coronavirus pandemic
• How to select an appropriate glide path
• The value of incorporating plan demographic data into the selection process
Aron Szapiro, Director of Policy Research, Morningstar
Lucian Marinescu, CFA, Portfolio Manager, Morningstar
David Blanchett, Head of Retirement Research for Morningstar Investment Management, walks through some of Morningstar’s latest defined contribution research. During this presentation, David covers:
-How core menu size impacts participant investment decisions
-Best practices for selecting and monitoring plan investments
-The drawbacks of mixing target-date funds with other plan investment options
-How demographics and fund attributes can drive acceptance of the default investment
David Blanchett, Head of Retirement Research, Morningstar Investment Management
Bigger Is Better - Defined Contribution Menu Choices With Plan Defaults
Keep Your Distance - 401(k) Participant Investment Behaviors (So Far) During the COVID-19 Crisis
Which Default Investment Is the Stickiest?
Mixed Target-Date Fund Investors - Is There a Method to the Madness?