More On Legal & Compliancefrom The Advisor's Professional Library
- Trading Practices and Errors When SEC-registered investment advisors conduct annual audits of firm policies and procedures, they should pay close attention to trading practices. Though usually not required to, state-registered advisors should look at their trading practices and revise policies that do not fully protect clients.
- U.S. Securities and Exchange Commission Information This information sheet contains general information about certain provisions of the Investment Advisers Act of 1940 and selected rules under the Advisers Act. It also provides information about the resources available from the SEC to help advisors understand and comply with these laws and rules.
Committee chairman Senator Herb Kohl (D-Wisconsin) mentioned possibly drafting legislation to make it easier for employers to offer lifetime income options to workers. However, compelling Americans to purchase some sort of annuity plan, as was rumored, is not something Kohl or the committee supports, the senator said.
Kohl stressed that while annuities may be the right fit for some retirees, they can also be highly complex and, in the retail market, they have often been associated with aggressive sales tactics. In 2007, the Aging Committee began examining some of the questionable practices used by so-called senior financial investment specialists in order to gain access to the retirement savings of older Americans. Many seniors targeted by unscrupulous salesmen have lost their life savings because they were steered toward investment instruments that were unsuitable for them, given their retirement needs and life expectancy.
"Our goal is to find ways to ensure U.S. retirees have access to lifetime income options that provide adequate consumer protections at a reasonable cost," Kohl said. "So far, the focus of most of our education efforts have been on encouraging people to save, but we have done little to help the average retiree make the difficult choices about how to make their savings last," said Kohl. "With Americans living longer, the stakes are high for not adequately managing one's savings."
At the hearing, Phyllis Borzi, assistant secretary of Labor for the Employee Benefits Security Administration, presented early analysis of responses they have received to their joint Request for Information (RFI) to determine how the agencies might enhance Americans' retirement security.