More On Legal & Compliancefrom The Advisor's Professional Library
- Preventing and Dealing with Client Complaints Although the SEC has not provided specific guidance on how client complaints should be handled, a firms policies and procedures should provide clear direction how to do so, as neglecting complaints can exacerbate a bad situation.
- Risk-Based Oversight of Investment Advisors Even if the SEC had a larger budget and more resources, it is doubtful that the Commission would have the resources to regularly examine all RIAs. Therefore, the SEC is likely to continue relying on risk-based oversight to fulfill its mission of protecting investors.
Fidelity has been chosen by Janus Capital Group (JNS) as its retirement benefits provider, the company announced Tuesday. It will provide a defined contribution plan, a nonqualified retirement savings plan and stock plan services to approximately 1,100 Janus participants with some $250 million in assets under administration when rollout is complete. In July Fidelity began providing some 401(k) and nonqualified retirement savings plans; in mid-October it added stock plan services for eligible participants.
Sue Armstrong, manager, Equity Retirement, Janus, said in a statement about the arrangement, “Fidelity’s ability to meet our needs as a broker-dealer and its experience working with more complex implementations reinforced our decision to choose the company as our retirement benefits provider. Our participants are already taking advantage of Fidelity’s investment guidance, including online tools and the popular on-demand workshops, helping them build more secure futures.”
One factor influencing the choice of Fidelity was Janus’ need, as a financial services firm, to meet certain regulatory requirements under FINRA2 Rule 350 and the Dodd-Frank Act, including the monitoring of securities trading activities by employees. Daily electronic snapshots of participant trading accounts and positions, obtained through Fidelity’s employee compliance reporting platform, provide Janus with the means to ensure compliance both with industry regulations and its own code of ethics.
Other considerations were the need to convert assets from multiple retirement plans from one provider to another, and the investment guidance provided by Fidelity to Janus employees. On-site and on-demand workshops, as well as online tools and phone guidance, were all factors in the decision, as was the ability of employees to meet one-on-one with Fidelity representatives in more than 160 locations throughout the country.