Massachussetts has a new fiduciary rule called 'The BIC Exemption' and many financial advisors are unsure how the new rule will affect them.
DOL’s Conflict of Interest Rule:
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Fiduciaries must act in the best interests of their clients, manage plan assets prudently, and avoid conflicts of interest; and
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Fiduciaries are prohibited from self-dealing, representing interests that are adverse to the interests of a retirement investor, and from receiving compensation from a third party with respect to advice given on retirement accounts.
The BIC Exemption allows for compensation relating to retirement account advice and requires advisors to have written policies and procedures.
A survey found that 49% of survey participants do not have any specific written policies and procedures.
Read more: Massachusetts Advisors Fail 401k Fiduciary Test |
