More On Legal & Compliancefrom The Advisor's Professional Library
- Nothing but the Best Execution Along with the many other fiduciary obligations owed by RIAs, firms owe a duty to seek best execution of clients transactions. If they fail to do, RIAs violate Section 206 of the Investment Advisers Act.
- Disaster Recovery Plans and Succession Planning RIAs owe a fiduciary duty to clients to prepare for disasters and other contingencies. If an RIA does not have a disaster recovery plan, clients financial well-being may be jeopardized. RIAs should also engage in succession planning, ensuring a smooth transaction if an owner or principal leaves.
The National Tax Sheltered Accounts Association on Friday released its report from the third annual 403(b) Compliance Resolution Summit, a forum for 403(b) professionals to identify service issues and develop best practices for the resolution of those issues.
Participants at the summit included IRS and Association of School Business Officials representatives, consultants, advisors and attorneys, who gathered to discuss such topics as fee disclosure guidance, participant advice and fiduciary issues, and audit requirements for ERISA 403(b) providers.
According to Ellie Lowder, consultant, TSA Training & Consulting Services and NTSAA advisor, “The focus of the annual summit is to examine common operational and compliance problems that are prevalent in the 403(b) marketplace and provide real working solutions and share these with practitioners through our Best Practices Manual.”
The compliance summary report, says Lowder, “identifies problem areas where best practices need to be established, and features recommendations for current issues like fee disclosure–which impacts virtually everyone in the 403(b) marketplace.”
She continued, “We also, with the assistance of the American Institute of Public Accountants (AICPA) thoroughly discussed problems with 403(b) ERISA plan audits. In addition, the report includes check lists, glossaries, and forms that are essential in understanding and adopting the best practices. I encourage anyone involved in the 403(b) market to read the report and consult the Best Practices Manual–together these provide an invaluable tool kit for the 403(b) ERISA and non-ERISA market.”