{"id":381,"date":"2017-10-05T09:25:42","date_gmt":"2017-10-05T14:25:42","guid":{"rendered":"http:\/\/rixtrema.com\/blog\/?p=381"},"modified":"2020-01-09T12:49:30","modified_gmt":"2020-01-09T17:49:30","slug":"which-finra-regulations-are-part-of-the-dol-rule","status":"publish","type":"post","link":"https:\/\/rixtrema.com\/blog\/which-finra-regulations-are-part-of-the-dol-rule\/","title":{"rendered":"Which FINRA regulations are part of the DOL Rule best interest report requirements?"},"content":{"rendered":"

Traditionally, courts and the DOL find some key elements to be most important, in regard to facts and circumstances presented by advisors in their attempts to make prudent decisions. In particular, a financial advisor should reasonably conclude that their report can create a documented record that is necessary for a best interest recommendation of a 401(k) to IRA rollover<\/a><\/span>. This is a crucial aspect of a procedurally prudent process.<\/span><\/p>\n

The IRAFiduciaryOptimizer software created by RiXtrema can create a report to help financial advisors document that a rollover from an ERISA-covered 401(k) plan to an IRA is performed in the client\u2019s best interest. The elements reviewed in the Report include fees, fund expenses , performance, risk assessment, as well as additional services available under the plan and IRA. The Report also provides better investment options and includes a risk tolerance questionnaire to help guide the financial advisor\u2019s analysis.<\/span><\/p>\n

Under the Fiduciary Rule, a recommendation to rollover from a 401(k) plan to an IRA must be prudent and in the best interest of the client. Moreover, the recommendation should correspond to the requirements of the BIC Exemption in order to avoid a non-exempt prohibited transaction.<\/span><\/p>\n

In the preamble to the BIC Exemption, the DOL also noted that financial advisors should consider the individual needs and circumstances of the clients, as described in FINRA Regulatory Notice 13-45. 81 Fed. Reg. at 21012. The notice identifies some additional factors that should be considered before recommending a rollover or partial investment in an IRA, such as:<\/span><\/p>\n