Ep #37: Wrestling with Rollovers and Other Regulatory Trends With Fred Reish
Fred Reish is a partner in Faegre Drinker’s Benefits & Executive Compensation practice group, the Investment Management group, and the Financial Services ERISA Team. Today he joins the show to discuss emerging regulatory trends affecting advisory firms and advisors, including the DOL's fiduciary advice exemption, PTE 2020-02, when advising on rollovers as well as it's guidance on cryptocurrencies and private equity.
On today’s episode the one and only Fred Reish joins me to discuss emerging regulatory trends affecting advisory firms and advisors. Fun fact - Fred is the first repeat guest on the show.
During our conversation, we focus much of our discussion on the new fiduciary advice exemption, PTE 2020-02 which became effective on February 16, 2021. The new prohibited transaction rules cast a wide net, impacting both qualified plans and IRAs and the compliance requirements are significant. Fred shares his concerns about the confusion he is seeing with regard to the effective compliance dates, the new and expanded requirements that both advisory firms and advisors must adhere here to, how the new rules create conflicts of interest when making rollover recommendations and what must be done to mitigate these issues, and how different types of firms are approaching education vs. specific advice on the different rollover options as well as how they are dealing with the new disclosure requirements.
Towards the end of the show, we also discuss the recent (and controversial) sub-regulatory guidance by the DOL on cryptocurrencies, why this guidance was so much different and explicit than the norm, practical considerations for firms and advisors when advising on crypto for plan sponsors, and how the guidance on crypto and private equity are closely aligned.
