Los Angeles partner Fred Reish was quoted in an article for ThinkAdvisor titled, “Planners Fear Unintended Consequences as DOL Rule Compliance Date Nears.” Fred noted that some general patterns are emerging with regard to firms’ compliance with the June 9 fiduciary rule effective date. He stated that the largest broker-dealers, as well as the good-sized broker dealers—especially those who have favored the RIA-type advisory business—are generally in good shape, but worries about the smaller broker-dealers.
“Many have not developed programs and systems for compliantly recommending rollovers and transfers of IRAs,” Fred said. “Many do not have industry data on reasonable compensation. Some have not trained their advisors on the essence of a fiduciary process and the need to document that process.”
He also voiced concern for smaller RIA firms, particularly ones that do little or no retirement work. He noted that even RIA firms that are familiar with the fiduciary requirements and prohibited transaction issues still need to develop procedures and systems for recommending distributions and rollovers, as well as transfers of IRAs.