Based on a Faegre Drinker webinar, InsuranceNewsNet shared takeaways from benefits and executive compensation partners Fred Reish and Joshua Waldbeser and counsel Joan Neri, including 11 mistakes registered investment advisers (RIAs) should avoid in complying with the Department of Labor’s (DOL) best interest rules.
Reish noted that rollovers include several different transactions, discussed mitigation techniques to combat conflicted advice and suggested not basing recommendations on investor preferences. He also highlighted “diligent and prudent” efforts to obtain necessary information.
Waldbeser emphasized recognizing “implied recommendations” and when a prohibited transaction occurs. He then explained the importance of thoroughly documenting rollovers and material or other complicated recommendations, “even if only as a risk management step.”
Additionally, Neri detailed the broader meaning of individual retirement accounts (IRAs) and two points to consider when assessing the reasonableness of compensation. She further addressed how the best-interest analysis includes costs.