InvestmentNews shared insights from its Registered Investment Adviser (RIA) Summit, including potential new regulations in the areas of retirement plan rollovers and marketing. Benefits and executive compensation partner Brad Campbell discussed the possible impact on firms and RIAs.
The publication noted two major upcoming changes: new fiduciary rules regarding advice on plan rollovers coming in Dec. and sweeping new rules that overhaul the framework for RIA firm marketing and solicitation, which go into effect in Nov. 2022. The industry is still awaiting details on any tax changes.
Campbell said many firms are not yet ready to meet the new requirements that become effective on Dec. 21. The new DOL rule requires that advisers who recommend rollovers must justify and explain the benefits, costs and all conflicts of interest associated with the change, including the adviser’s compensation if they will be providing advice once the rollover is complete, he added.
“To do a rollover, everyone needs a Prohibited Transaction Exemption 2020-02, which has requirements like Regulation Best Interest, but it’s not exactly the same,” Campbell explained. “Even the largest firms, which are spending lots of money to meet the deadline, are scrambling. And smaller RIAs may not realize what they have to get done by then.”