Michelle Capezza Featured as Panelist in “We’ve Got Answers”Confero Fall 2015
Michelle Capezza, a Member of the Firm in the Employee Benefits and Health Care and Life Sciences practices, in the firm’s New York office, authored an article in Confero magazine, as a panelist in the “We’ve Got Answers” section. Ms. Capezza discusses how employers’ relationships with retirement plan advisors may change under the new Department of Labor fiduciary standard.
Following is an excerpt (see below to download the full article in PDF format):
As a plan sponsor, you are undoubtedly aware that the Department of Labor’s proposal for a new fiduciary standard under ERISA has been called a retirement industry game changer. The proposed rules seek to treat those who provide investment advice or recommendations to an employee benefit plan, plan fiduciary, plan participant or beneficiary, IRA or IRA owner as fiduciaries under ERISA and the tax code in a wider array of advice relationships than currently exists. The rules also seek to create new exemptions, and amendments to existing exemptions, from prohibited transaction rules to allow certain broker-dealers, insurance agents and others that act as investment advice fiduciaries to continue to receive a variety of common forms of compensation that would otherwise be prohibited as conflicts of interest. The main impetus for these rules is the concern that many advisers have escaped fiduciary status under the existing fiduciary standard and that they have direct and substantial conflicts of interest which encourage investment recommendations that generate higher fees for the advisers at the expense of their customers and result in lower returns for customers.