On October 25, 2011, the Department of Labor (DOL) released its final rules related to the provision of Investment Advice under the Pension Protection Act (PPA) of …wait, here it comes… 2006, that pre-financial-crisis, almost-forgotten law. So, why should financial advisors care about a DOL ruling when the DOL regulates advice in retirement plans that fall under the Employee Retirement Income Security Act (ERISA)? Well, the reason is because the DOL also happens to regulate “prohibited transactions” on Individual Retirement Accounts (IRAs).
Showing all posts by Sean Cunniff
Serving the mass affluent market with technology
Historically, the financial planning and advice industry focuses on advisor-centric offerings targeted at higher net-worth clients. The delivery has varied across many types of firms, but the essential program has remained the same — a very skilled (and highly compensated) advisor, serving a small number of relatively wealthy clients. The most prevalent model consists of the advisor having a series of face-to-face meetings with the client to gather information about goals and objectives, assets and liabilities. The advisor then formulates a financial and/or investment plan and again meets face-to-face with the client to deliver the plan.
Offering retirement income planning: Addressing the obstacles and challenges
Retirement income is getting a fair bit of industry attention these days, as it shifts from being a niche segment of the wealth management industry to become a driving force. However, retirement income planning is still in its infancy, and no one is quite sure where it will end up.
