In our current discussion,
we were thinking of how the new Department of Labor (DOL) is controlling your
investment choices. To refresh, they are
basically reigning in on expense charges.
I wanted to not only clarify what this new regulation does (which will
take effect on April, 2017) but also to list the areas and investments that
will be effected.
As was stated, the new
regulation puts additional emphasis on investment charges and fiduciary
responsibilities that advisers must adhere to. To me that’s laughable as FINRA (Financial
Investments National Regulatory Agency) and the SEC (Securities Exchange Commission)
already have stringent regulations with severe penalties if they are not
met. Consequently, it’s mostly about
politicians trying to raise this issue as a slick way to win votes.
Please keep in mind that
there are BICE exemptions (Best Interest Contract Exemptions). This states that clients can maintain commissionable
investments as long as they are clearly delineated in a separate document
signed by client.
Now for investments that
are scrutinized. The DOL (Department of
Labor) leaves no stone unturned.
Remember that these investments are related to IRAs, 401)k’s, Profit Sharing
accounts and other tax-deductible, Qualifies accounts.
All Mutual Funds held in Qualified
accounts
All Annuities even including
Fixed and Variable annuities (which oddly enough bears no investment fees but SOMETIMES
does include a decreasing surrender fee).
Life Insurance in a
Pension Plan
ETF’s (Exchange Traded
Funds)
Separately Managed
Investment Accounts (a non commissioned investment that only charges a management
fee)
In effect all investment
accounts are effected. I am extending
free, objective open-ended invitation to do a thorough non-obligatory
invitation to review your accounts to see how these new government regulations
affect you. You may contact me at either
518 377 3245 or email at rfowler@americanportfolios.com.
Thank you for your time
and continued success in your business and investments.