May 2, 2018

Fred Reish Quoted in InvestmentNews and Ignites on SEC’s Proposed Investment Advice

Los Angeles partner Fred Reish was quoted in InvestmentNews and Ignites on the Securities and Exchange Commission’s (SEC) proposed investment advice rule. The InvestmentNews article, “6 Big Questions about the SEC Advice Rule,” highlights some of the most popular areas of confusion for broker-dealers and investment advisers. Fred discussed the proposed “best interest” standard for brokers, noting its similarity to the DOL fiduciary rule’s best interest component. “I do think it’s a fiduciary standard,” Fred said. “The question is: Is it the fiduciary standard people want?” Fred also noted that he anticipates the financial industry will hear a lot more about conflict mitigation in the near future.

The Ignites article, “SEC Finds ‘Lots of Problems’ With Rollover Advice,” looks at the SEC’s handling of rollover advice. The agency has stated that it considers rollover advice a “perennial issue” and intends to make it a priority in its 2018 examinations. In the meantime, industry professionals say that firms should use checklists or similar policies that demonstrate an analysis of the investments in the plan, the services offered compared with those in an IRA, and how the services compare with the client’s financial circumstances and projected goals.

“Legally, the difference between suitability and prudence is meaningful,” Fred said. “But in most cases where investors and participants are underserved, it’s because there was no analysis at all.”

Fred also discussed other services fund firms could provide for rollover clients, including developing lifetime income products with insurance providers.

Read “6 Big Questions about the SEC Advice Rule.”
Read “SEC Finds ‘Lots of Problems’ With Rollover Advice.” (subscription required)

The Faegre Drinker Biddle & Reath LLP website uses cookies to make your browsing experience as useful as possible. In order to have the full site experience, keep cookies enabled on your web browser. By browsing our site with cookies enabled, you are agreeing to their use. Review Faegre Drinker Biddle & Reath LLP's cookies information for more details.