Los Angeles partner Fred Reish was quoted in a Legal Newsline article titled, “Law prof: Trump’s lawless behavior with fiduciary rule undermines process.” The article focuses on Mercer Bullard, a University of Mississippi law professor and strong advocate of the rule. Bullard argues that the rule had one of the most thorough vettings and that the 60-day delay could hurt future rulemaking.
In the article, Fred comments on the Impartial Conduct Standards and what they mean for advisers and the industry.
An InvestmentNews article focused on how 401(k) advisers can protect themselves from litigation following the implementation date. In the article, Fred discussed the subtle difference advisers and plan sponsors should be aware of when advising clients.
Whereas advisers and plan sponsors focus most of their energy on the quality of the investment management (e.g., fund performance), that's not where the greatest litigation risk lies, Fred said. Instead, advisers should be focusing on fund costs and share class. A mutual fund expense ratio is a quantitative, rather than qualitative, issue and is therefore easier to attack in a lawsuit.
Fred also discussed adviser responsibility, record-keeper benchmarking and what could possibly be construed as a fiduciary recommendation.