7 States With Major 401(k) Fiduciary Proposals

401k, fiduciary, retirement, Drinker Biddle

What, if anything, is happening in yours.

If you need a convenient, “all-in-one-place” overview of what’s happening at the state level, Drinker Biddle’s got it. The Best Interest Compliance Team at the legal powerhouse put together the following list of bills, proposals, regs and requirements now put forth involving fiduciary and related matters.

State Fiduciary and Best Interest Developments

Connecticut

Sources: National Tax-Deferred Savings Association Article, Text of HB 7161

Illinois  

Illinois Legislature HB4753, which is just a short title with no text. The legislative record so far is:

Sources: HB4753

Maryland

Sources: The Financial Protection Act of 2019, Maryland bill to Impose Fiduciary Duty on Brokers and Insurance Representatives, Hearings Set for Maryland’s Proposed Fiduciary Duty Bill

Massachusetts

Sources: Preliminary Request for Public Comment on Proposed Fee Table for State-Registered Investment Advisers

Nevada

Sources: Senate Bill No. 383, September 8, 2017 Notice of Regulations, October 2, 2017 Notice of Regulation, January 18, 2019 Draft Fiduciary Duty Regulations

New Jersey (Legislation)

Sources: New Jersey Proposed Bill Text No. 208 Proposed Bill Text

New Jersey (Regulation)

Sources: Governor Murphy Announces Plan to Require NJ Financial Industry to Put Customers’ Interests First, New Jersey Business Magazine article on Adopting ‘Uniform Fiduciary Standard’, New Jersey Bureau of Securities Pre-Proposal

New York (Regulation)

Sources: Drinker Biddle Blog Post on Proposed Regulation, Final Version of New York Insurance Regulation 187

New York (Legislation)  

Sources: The Investment Transparency Act

National Association of Insurance Commissioners (NAIC)            

Sources: Suitability in Annuity Transactions Model Regulation

Best Interest Compliance Team

Drinker Biddle’s national Best Interest Compliance Team assists clients with the evolving and overlapping federal and state regulations related to the standard of care for broker-dealers, investment advisers, and insurance companies, agents and brokers.

The interdisciplinary group of more than 20 lawyers consists of attorneys from the firm’s Investment Management, ERISA, SEC and Regulatory Enforcement Defense, Litigation/FINRA Arbitration, and Insurance Regulatory and Transactional practice areas. The team includes attorneys who were former financial services in-house counsel, legislative professionals, compliance supervisors and/or regulators.

We actively assist investment managers, broker-dealers, registered investment advisers, retirement plan/IRA service providers and insurance companies with the challenges resulting from the ever-changing regulations from the SEC, FINRA, the Department of Labor and state agencies related to fiduciary requirements and best interest duties.

Our experience with fiduciary and best interest compliance and reporting obligations includes strengthening supervisory procedures and internal controls. In addition, our lawyers’ draft agreements, disclosure documents and Written Supervisory Procedures to assist with the implementation of the anticipated new standard of care, and supervision of that standard. We also advise clients on the development of products and services that are consistent with ERISA’s fiduciary standards and prohibited transaction restrictions, including retirement income investments and guarantees.

We represent clients involved in investigations and enforcement matters before agencies such as the SEC, the Department of Labor, the IRS, FINRA and other self-regulatory or state agencies. Our lawyers also provide independent assessments of risk management and supervisory frameworks, and overall compliance policies and procedures related to conflicts of interest, breaches of fiduciary duty and securities law violations. In addition, our lawyers represent broker-dealers, investment advisers, insurance companies and other financial services entities in litigation and arbitration matters on standards of care and conflicts of interest.

Through articles, webinars, audiocasts and white papers, our Best Interest Compliance Team also provides investment advisers, brokers, insurance representatives and others with counsel and information to stay ahead of directives from the SEC, FINRA, the Department of Labor and other regulatory agencies.

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