How do advisors make sense of proposed DOL regulations as they apply to fiduciary duty and specifically their potential impact on how advisors manage IRA rollovers?
Not an easy question, but one Pershing attempts to answer in a white paper released Tuesday.
The white paper, "Navigating the Evolving Regulatory Landscape in Pursuit of Rollovers," written by ERISA attorney and retirement plan expert Fred Reish, provides insight into the anticipated regulatory changes that will modify the definition of a fiduciary. Pershing said it released the white paper "to help guide advisors on how they can accommodate these rules" as they apply to IRA rollovers "and continue to deliver services to their clients."
Robert Cirrotti, director of retirement solutions at Pershing, said there were three drivers behind the release of the paper.
"The first is the ongoing regulatory discussion and pondering of fiduciary, and the potential DOL and SEC activity on the subject," Cirrotti said. "The second driver is the fact that 40% of advisors do some type of retirement planning. It's a relevant issue, and IRA rollovers will be the largest source of net new money to money management in coming years. In fact, McKinsey estimates that rollovers are expected to drive 40% to 50% of net new money for wealth managers through 2015."
The third driver, he said, was a continuation of the conversation begun with "clients" (Pershing-affiliated advisors) at this year's annual Pershing Insite conference in Hollywood, Fla., in June.
"It surrounds the discussion of retirement as a share of wallet. Retirement plans are the No. 1 source of savings for individuals, so the opportunity is huge."
