Some attorneys said the text of the final rule was clear in expressing the Frost letter would still be viable under the fiduciary rule. But the DOL likely felt the need to explicitly state this point in the second round of FAQs to eliminate any unintended confusion that arose from the first tranche. “People got concerned and they reiterated it,” said David Levine, principal at Groom Law Group. However, there's still confusion as to if advisers are able to use the Frost letter with respect to an aspect of BICE known as BICE Lite, a more streamlined, less-involved exemption available only to level-fee fiduciaries, Mr. Levine said. “There's a lot of concern you can't use BICE Lite with Frost,” Mr. Levine said. “It's still unclear” if advisers can receive third-party payments and still use that particular exemption, he added. One example in which this situation might arise is if advisers recommend themselves as consultants to a 401(k) plan for a level fee, which would partly be paid with revenue sharing, according to Mr. Levine. He questions, given available guidance, whether this practice, which “happens a lot,” would satisfy the standards of BICE Lite.DOL #FiduciaryRule FAQ Part II Q7 confirms "fee offset" under AO 97-15A is still acceptable to avoid PT. No PT = no need for PTE i.e., BICE
— Jason C. Roberts (@JasonRobertsESQ) January 13, 2017
Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.
From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.
"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.
Chair also praised the passage of stablecoin legislation this week.
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Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.