More On Legal & Compliancefrom The Advisor's Professional Library
- Use and Misuse of Social Media Social media is an inexpensive and effective way to communicate with established and prospective clients. Nevertheless, when RIAs utilize social media to promote their advisory practices, they risk compliance problems for their firms.
- The New and Improved Form ADV Whether an RIA is describing its investment strategy in advertisements or in the new Form ADV Part 2, it is important the firm articulates material risks faced by advisory clients and avoids language that might be construed as a guarantee.
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.