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Insights

Regulation Best Interest (Reg BI)

On June 5, 2019, the SEC adopted Regulation Best Interest (Reg BI) under the Securities Exchange Act of 1934. Reg BI establishes a "best interest" standard of conduct for broker-dealers and associated persons when they make a recommendation to a retail customer of any securities transaction or investment strategy involving securities, including recommendations of types of accounts. As part of the rulemaking package, the SEC also adopted new rules and forms to require broker-dealers and investment advisers to provide a brief relationship summary, Form Customer Relationship Summary (CRS) to retail investors.

New Safe Harbor For Electronic Delivery Of Participant Disclosures

On May 21, 2020, the Department of Labor (DOL) adopted the final version of a safe harbor rule (the "Electronic Disclosure Safe Harbor") that allows retirement plan sponsors to satisfy required participant disclosure requirements by suing website postings or email as a default approach for all participants. This reflects a major relaxation from the main existing DOL rules related to electronic disclosures. Old Safe Harbor Electronic delivery rules: Permitted electronic delivery of participant disclosures only for participants who affirmatively consented (opt-in) or who have computers that are integral to their jobs. New Safe Harbor (the "Electronic Disclosure Safe Harbor") delivery rules: Allows retirement plans sponsors to satisfy required disclosure requirements of "Covered Documents" of "Covered Plans" to "Covered Individuals" by using either website postings or email as the default approach for all "Covered Individuals". New rules were finalized on May 21, 2020 New rules are effective 60 days after the date they were published

Coronavirus Aid, Relief, and Economic Security (CARES) Act FAQ

On March 27, 2020, the President signed a $2 trillion relief package entitled the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act is intended to provide "emergency assistance and health care response for individuals, families and businesses affected by the 2020 coronavirus pandemic." This frequently asked questions (FAQ) is intended to address CARES Act provisions related to individual financial assistance to help individuals withstand the harsh impact of COVID-19. IMPORTANT: Before considering or acting on any of the information included in this FAQ, individuals are advised to seek qualified counsel from their legal, tax and/or financial advisors. If I am experiencing a dire financial need as a result of the COVID-19 pandemic, is there a way for me to access funds in my retirement accounts? Potentially, yes. As it relates to your employer-sponsored retirement plan, there may be two provisions available to "qualified individuals": Coronavirus-related distribution (CRD): IF you are a

The Secure Act Highlights

The SECURE Act of 2019 (Setting Every Community Up for Retirement Enhancement) was signed into law as part of a government funding package on December 20, 2019, with overwhelming bipartisan support. The SECURE Act is the most comprehensive retirement savings package to become law since the Pension Protection Act of 2006. The SECURE Act is wide-ranging, spanning nearly 40 provisions. The Act seeks to improve access to employer-sponsored retirement savings plans, increase savings levels within plans, streamline administration of plans, and provide for a wider range of options for generating retirement income, such as annuities. Changes to IRAs and retirement plan Increase the mandatory RMD age: Required minimum distributions (RMDs) will begin in the year after an individual turns 72, up from the current 70½. Effective in 2020 for those who attain age 70½ in 2020 or later. Remove the age limit for traditional IRA contributions: Non-rollover contributions to traditional IRAs are permitted after