The Securities Compliance Podcast Season 5 Episode 3 – Breaking Down the "New" DOL Fiduciary Rule

Podcast

Securities Compliance Podcast: Compliance in Context

In Season 5 Episode 3 of The Securities Compliance Podcast: Compliance in Context, host and Calfee Partner Patrick D. Hayes welcomes renowned retirement plan fiduciary expert Fred Reish to discuss another groundbreaking DOL Fiduciary Rule and unpack where and how it will affect investment adviser and broker-dealer firms across the country.

Show

Interview with Fred Reish

• Reviewing the evolving standards of care (Reg BI, RIA, DOL, NAIC).

• How have disclosures evolved to comply with the differentiated standards of care?

• What does the new DOL Fiduciary Rule say and what’s changing?

• Who is going to be impacted by the changes to this new rule?

• What are the impartial conduct standards?

• Are there disclosures and other exemptions out there to help mitigate the conflicts noted in the new rule, and how can firms comply with them?

• What triggers an investment recommendation under the new rule?

• Is there a wholesaler exception?

• What is the compliance date for the new rule?

• What kinds of information does an individual need to review in order to effectively perform a comparative analysis for an IRA recommendation?

Quotes

7:54 – “If you look at both of those, I think Reg BI for broker-dealers is actually a tougher standard. I know that’s going to surprise some investment advisers to hear that, and part of that’s because the interpretation for investment advisors is really principles, truly principles-based. And, you know, the SEC said the duty of care and the duty of loyalty for investment advisors together is a best-interest standard of care but very principles-based. If you get into Reg BI, the standard of care is principles-based, but then there are a bunch of rules-based parts to Reg BI. So, for no other reason other than just the volume of rules alone under Reg BI make it a more complicated and more demanding set of requirements.” – Fred Reish

21:32 – “Number one, the advisor has to satisfy the impartial conduct standards. Well, what are impartial conduct standards? That's a label from the Department of Labor. It has meaning, though. You have to act with a duty of care, sort of thing of a fiduciary duty, and a duty of loyalty. Similarly, a fiduciary duty. You can't put your interest ahead of the investors. No more than reasonable compensation relative to the services provided, no materially misleading statements. There is a group of things like that that are called the impartial conduct standards.” – Fred Reish

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About the Securities Compliance Podcast: Compliance in Context

Introducing the Securities Compliance Podcast: Compliance in Context presented by Calfee, Halter & Griswold, and the National Society of Compliance Professionals and hosted by Patrick D. Hayes, Partner and Chair of Calfee's Investment Management practice.

Designed as a personal master class for the securities legal and compliance professional, this podcast embodies Patrick’s passion to help you put Compliance In Context™ by combining the technical expertise of industry thought leaders and innovators with the practical experience of doers and key decision makers.

Listeners will find the podcast on Apple Podcast, Google Podcast, Spotify, and Stitcher.

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The opinions expressed by guest speakers and panelists during Securities Compliance Podcasts may not necessarily reflect the viewpoints of the attorneys and professionals of Calfee, Halter & Griswold LLP or its subsidiaries or affiliates. Calfee’s educational content is intended to inform and educate readers about legal developments and is not intended as legal advice for any specific individual or specific situation. Please consult with your attorney regarding any legal questions you may have. With regard to all content including case studies or descriptions, past outcomes do not predict future results.