Regulatory

2019 CFP® Ethics Class Finally Closes Loopholes; Historic Progress For Profession

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The progress of civilization is slow and always somehow surprising. So it is with the evolution of the financial planning profession. Six years ago, A4A reported on how CFP Board's standards of conduct opened gaping loopholes in the fiduciary standard. We examined scenarios" like the one shown below published by CFP Board to show the loophole.    Effective October 1, 2019, CFP Board finally closes them with its new ethics standards.  CFP Board requires certificants to learn about the new ethics standards effective October 1, 2018. The new standard and new ethics class are a real p

The New Fiduciary Rules: Good Or Bad?

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I was happy to hear that the DOL finally approved the new fiduciary rules on investment advice for retirement plans. As an RIA, I’ve always been held to the fiduciary standard—to put the interests of clients first. It’s good to require that of all advisors.

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Annuities And The Fiduciary Rules

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I have often written about the “evils of annuities.” In my experience, I have seen annuities sold:   Within retirement accounts – There is no purpose to putting a high cost tax-deferred product into an account that is already tax-deferred. To elderly people – A variable annuity sold to an 80-year old with a 10-year surrender charge just doesn’t make financial sense. To people earmarking the money for a shorter-term purpose – Can you believe an annuity with a 10-year surrender charge was sold to a couple for their 12-year old child&rsq

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Can Your Clients Trust Their 401(k) & IRA Investments?

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Registered Investment Advisors have long known about the potential for conflicts of interest when commission-based providers offer 401(k) and IRA investments. The Department of Labor has been trying to implement fiduciary requirements for years and seems ready to issue final regulations soon.  The courts are now getting involved also. This could be the beginning of the end for predatory 401(k) and IRA investment choices.

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For Small BDs And Clearing Firms, FINRA Legal Action Serves As a Cautionary Tale On Anti-Money-Laundering Compliance

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FINRA announced yesterday that it imposed a $1 million fine on a Nebraska clearing firm for repeatedly violating anti-money laundering (AML), financial reporting and supervisory requirements.  The announcement serves as a good checklist for compliance and supervisory personnel about the types of matters FINRA may investigate during firm audits.  

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