The Fiduciary Rule

Topic

[fgParticipant]

Many great News&Views on the Rule since the Summer Conference:

http://riia-usa.org/the-household-balance-sheet%e2%84%a0-view-and-the-dol-fiduciary-rule/

http://riia-usa.org/michael-kitces-dol-fiduciary-rule-fintech-and-the-rma-whats-the-connection/

http://riia-usa.org/addressing-common-data-challenges-for-dol-fiduciary-rule-compliance/

http://riia-usa.org/embracing-the-86-levels-of-service-in-riias-procedural-prudence%e2%84%a0-map/

[fgParticipant]

Read this to get a sense of where RIIA is going with the Fiduciary Rule:

http://riia-usa.org/no-portfolio-is-an-island-because-all-portfolios-trace-a-specific-path-on-riias-procedural-prudence-map%e2%84%a0/

[fgParticipant]

As we prepare for the Summer Conference, see the important perspectives that we published in early June:

http://riia-usa.org/how-complete-is-your-retirement-planning-process/

http://riia-usa.org/how-can-you-check-the-completeness-of-your-retirement-policy-statement%E2%84%A0/

http://riia-usa.org/riias-household-balance-sheet-view%E2%84%A0-a-map-for-the-strategic-use-of-retirement-planning-in-the-development-of-new-business-model-compliance-and-data-collection-projects-under-t/

http://riia-usa.org/the-three-disruptions-the-fiduciary-rule-is-a-symptom-of-a-fundamental-demographic-cause/

[fgParticipant]

As you can see we are continuing the series of News&Views that articulate the links between the Fiduciary Rule and the matching value of RIIA’s RMA curriculum. In this post we explore the strategic use of retirement planning under the requirements of the Rule.

http://riia-usa.org/riias-household-balance-sheet-view%E2%84%A0-a-map-for-the-strategic-use-of-retirement-planning-in-the-development-of-new-business-model-compliance-and-data-collection-projects-under-t/

[fgParticipant]

Yesterday’s News&Views marks the beginning of a series on the measurement of quality in retirement planning advice. What is quality in retirement planning? How do you measure it? How do you benchmark it? How do you validated it?

http://riia-usa.org/how-complete-is-your-retirement-planning-process/

[fgParticipant]

This discussion topic regroups our Fiduciary Rule News&Views. This link, see below, if of interest because it shows where you can find evidence that RIIA’s approach was prophylactic and protective under the old fiduciary/suitability regime and that it is also prophylactic and protective under the DOL’s fiduciary rule, whatever it may become given the recent challenges.

It is the case because our work starts with the client rather than the product and thus achieves the highest standard of completeness of process in the interest of the client.

http://riia-usa.org/financial-advisor-magazine-surveys-the-post-dol-landscape/

[fgParticipant]

Join us for the Summer Conference in Salem. Marcia Wagner, Esq. and Kevin Knull (MoneyGuidePro) have a session that will help you steer your way in these uncertain times.

http://riia-usa.org/financial-advisor-magazine-surveys-the-post-dol-landscape/

[fgParticipant]

Our work on the Fiduciary Rule is getting interesting. See Joan Boros, Esq. News&Views on RIIA’s point of view on the Rule:

http://riia-usa.org/perspectives-the-dols-fiduciary-rule-and-the-point-of-riias-view-across-the-silos%E2%84%A0/

[Francois GadenneParticipant]

How can we think systematically about the critical issues?

http://riia-usa.org/perspectives-the-impact-of-language-blindness/

To think systematically about the critical issues, we need a map.

We have a map: The RMA curriculum and its summary: The Procedural Prudence map.

http://riia-usa.org/wp-content/uploads/2016/01/Proceedural-Prudence-Map.pdf

[Francois GadenneParticipant]

Key questions that we are discussing with the membership and that will be part of our Summer Conference presentations:
- What is complete retirement advice?
- What is a complete retirement process flow?

http://riia-usa.org/perspectives-limraloma-conference-notes-from-a-great-conference/

[Francois GadenneParticipant]

Coming back from LIMRA’s retirement conference in Boston, see below raw notes and observations:

Insurance Company speakers going through the stages of grief:
- challenging the legitimacy of the DOL,
- protesting the impacts of the rule,
- looking for providers of workarounds that fit in current product
processes so that they can treat BIC as just another page in the stack
for signatures.

Pure transaction is safe for product sellers.
- Giving a little bit of advice in a transaction means being a fiduciary and
- thus means that it is not possible to continue to use partial
(incomplete) planning processes to sell products.

In order to provide Best Interest advice, one needs to see the entire
Household Balance Sheet otherwise what matters for best interest
investment advice (investment allocations, let alone retirement
allocations) may be missed, including( (stepping across RIIA’s Household
Balance Sheet template for Human Capital, Social Capital, Financial
Capital, Consumption, Debt, and Bequest):
- Spouse is much younger and will work past participant’s retirement
- Spouse has as a large pension,
- Spouse is not eligible for Social Security
- Household has most of their household balance sheet assets in rental
properties
- Participant has angel investments in start-up companies/venture fund
- Household owns large farmland or minerals leases
- Participant has large liabilities from a prior divorce,
- Spouse has an expensive, chronic medical condition,
- Household has large mortgages going into retirement
- Household has several leased cars
- Household rolls monthly a large and growing credit-card balance
- Household has disabled child/children requiring support by the
participant’s death, etc.

If one is going to give complete advice, who has the benchmark for
completeness?
- riia can provide this benchmark with RMA, HHBS, PPm, etc. in the
retail channels
- riia can also provide this benchmark for advice completeness in the
Defined Contribution channels as an extension from “integrated benefits”
to “integrated planning”.

[Francois GadenneParticipant]

Yesterday’s News&Views provided a client view on the Fiduciary Rule.

http://riia-usa.org/perspectives-the-impacts-of-the-fiduciary-rules-summer-conference-panel/

An earlier News&Views presented the history behind the development of our client-focused organizational DNA.

http://riia-usa.org/perspectives-walking-the-path-of-the-client/

[Francois GadenneParticipant]

This comment adds the link to Marcia Wagner’s summary of the rule.

http://riia-usa.org/commentary-the-department-of-labors-finalized-fiduciary-rule-what-you-need-to-know-2/

[Francois GadenneParticipant]

The purpose of this Discussion Topic is to regroup in one place the links to the several News&Views and Commentaries published on this website about the Fiduciary Rule. This will make it easier for you to find them, print them, read them and comment on them here.

http://riia-usa.org/commentary-an-overview-of-the-fiduciary-rule/

http://riia-usa.org/perspectives-differentiation-riia-the-fiduciary-rule/

http://riia-usa.org/perspectives-as-dol-rules-released-a-focus-at-tiburon-ceo-summit-on-client-focused-planning-riias-approach-for-a-decade/

http://riia-usa.org/perspectives-fiduciary-standard-knowledge-based-competence/

http://riia-usa.org/putting-clients-first-riia-and-the-fiduciary-rule/

What are the implications of the rule for product qualification selling in the Mass Market? (Product-based planning)
What are the implications for goals-based planning for the Affluent customers?
What are the implications for investment-based planning for the HNW clients?

[Author]

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