Last month the U.S. Department of Labor published a suite of final regulations governing the fiduciary status of, and prescribing conflict of interest rules that apply to, persons who provide investment advice to ERISA-covered retirement plans and Individual Retirement Accounts (IRAs). (For a list of, and links to, these final regulations, please see our April 11, 2016 post). As we explained previously, the final regulations will have important and far reaching consequences for financial advisors of all stripes (e.g., broker-dealers/registered representatives, Registered Investment Advisors (RIAs), and insurance agents and brokers, among others) who advise retirement plans and IRA investors.In an earlier post we examined the new and greatly expanded definition of an “investment advice fiduciary,” which is of central importance to the Department’s new regulatory scheme. In this post, we explain the “Best Interest Contract” (or … [Read more...] about The Department of Labor’s 2016 Final Fiduciary and Conflict of Interest Rule: The Best Interest Contract Exemption
Best brokerage accounts 2018
Fueled by the leak of the Panama Papers, the Financial Crimes Enforcement Network (FinCEN) has converted its proposed beneficial ownership regulation into a final regulation that requires financial institutions to identify and verify beneficial owners of their legal entity customers. Heralding the new regulation as a critical step in its effort to prevent criminals from using companies to hide their identity and launder criminal proceeds, the Treasury Department, buttressed by new Justice Department initiatives, is amplifying the momentum building within the anti-money laundering (AML) enforcement community to achieve unprecedented transparency across the corporate spectrum.In formulating the final regulation, FinCEN has built upon the customer due diligence (CDD) mandated by existing Customer Identification Program (CIP) regulations. Essentially, it adds a provision requiring financial institutions to identify and verify the natural persons who are beneficial owners of their … [Read more...] about Anti-money Laundering Regulators Bringing Transparency into Clear Focus
The Department of Labor’s (DOL) new fiduciary rule became effective in part on June 9, 2017. The definition of fiduciary was expanded by broadening the term “investment advice,” and the impartial conduct standards became effective. The remaining provisions of the fiduciary rule are currently scheduled to be effective as of Jan. 1, 2018. However, this month, in a notice of administrative action filed in an ongoing lawsuit, the DOL indicated it has proposed to the Office of Management and Budget postponing the effective date for further implementation to July 1, 2019. The period of time between the June 9, 2017, effective date and the date when full implementation of the new fiduciary rule is required is referred to as the “Transition Period.”The fiduciary rule applies to qualified retirement plans and private 403(b) plans, IRAs, health savings accounts and certain other savings vehicles. Plan sponsors must recognize when a service provider is a fiduciary … [Read more...] about New Fiduciary Rule: What Does Possible DOL Delay Mean for Plan Sponsors?
A private lawsuit alleging the illegal sale of unlicensed securities and securities fraud was recently filed against the promoters of a highly successful initial coin offering, as well as other persons, in a state court in California. This legal action comes shortly after the Securities and Exchange Commission warned that ICOs could involve the offer and sale of securities subject to registration requirements that are not appropriately registered or exempt. Separately, the Commodity Futures Trading Commission filed and settled charges against a swap dealer, alleging that the firm failed to disclose certain price information in a manner precisely required by regulation prior to swap entry and afterwards. As a result, the following matters are covered in this week’s edition of Bridging the Weeks :Backers of Tezos Initial Coin Offering Named in Prospective Class Action Litigation (includes Background and My View);International Food and … [Read more...] about Bridging the Weeks: October 30 – November 10 and November 13, 2017 (Initial Coin Offerings; Price Disclosure; Wash Sales; Audit Trails)
By The Washington Post | PUBLISHED: June 20, 2018 at 4:52 pm | UPDATED: June 20, 2018 at 4:53 pm By Steven Mufson | Washington Post WASHINGTON – As a wealthy and experienced investor, Commerce Secretary Wilbur Ross was expected to bring polish and sagacity to his job in the Trump cabinet. But a Forbes magazine report this week has suggested Ross has brought tarnish and imprudence. The magazine disclosed that Ross had kept stakes in Chinese-owned companies, a shipping firm tied to leading Russians, and a Cypriot bank while holding public office. In some cases where he did sell his shares, family members retained interests that some ethics experts said could pose conflicts of interest for Ross in trade talks. After Ross learned that Forbes was preparing an article about his investments last fall, he short-sold stock in the Russian-linked company – a risky tactic used for by sophisticated investors betting that a stock price will go down. Yet when Ross testified at a … [Read more...] about Ethics spotlight once again shines on Wilbur Ross