Senate to Hold Retirement Income Hearings

Hearings come on heels of Labor Department survey on in-plan annuities

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  • Scope of the Fiduciary Duty Owed by Investment Advisors A fiduciary obligation goes beyond the suitability standard typically owed by registered representatives of broker-dealer firms to clients. The relationship is built on the premise that the advisor will always do the right thing for the person or entity receiving advice.
  • Client Commission Practices and Soft Dollars RIAs should always evaluate whether the products and services they receive from broker-dealers are appropriate. The SEC suggested that an RIA’s failure to stay within the scope of the Section 28(e) safe harbor may violate the advisor’s fiduciary duty to clients, so RIAs must evaluate their soft dollar relationships on a regular basis to ensure they are disclosed properly and that they do not negatively impact the best execution of clients’ transactions.
The Senate Special Committee on Aging will hold a hearing this Wednesday, June 16, on the issue of retirement and lifetime income. The announcement comes amid an increased focus by legislators in the wake of the economic crisis to help secure lifetime income for retirees. President Obama mentioned annuities as a possible source of lifetime income in his State of the Union, and the Labor Department recently released its request for information (RFI) on in-plan annuities.

The Committee will hold a hearing on June 16, 2010 at 2:00 pm in Dirksen 562. The title of the hearing is "The Retirement Challenge: Making Savings Last a Lifetime."

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