Matrix Financial Solutions has released an advisor practice guide in anticipation of the potential impact that the proposed changes to ERISA’s fiduciary rules could have on IRAs. IRAs & the ERISA Fiduciary Rules: Updates and Best Practices for a Changing Regulatory Environment outlines the current rules and what is being proposed, as well as the impact on advisors and what preemptive steps they can take.
Cindy Dash of Matrix Financial Solutions explains: “The proposed regulations may result in more broker-dealers and RIAs being classified as an ERISA ?duciary when they provide services to IRAs. It’s important that advisors and brokers take the necessary steps to re-evaluate their business models and compensation structures in anticipation of any regulatory changes.”
Matrix’s practice guide provides a three-step framework to help advisors understand the potentially harmful effects of applying the ?duciary rules to IRA activity without suf?cient prohibited transaction exemptions:
• Evaluate your rollover business model
• Assess the rollover IRA opportunity
• Monitor new developments
