Compliance September 19, 2011

EBSA to Re-Propose Definition of Fiduciary Rule

The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) will re-propose its rule on the definition of a fiduciary.
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The decision to re-propose is due in part to requests from the public, including from members of Congress, that the agency allow an opportunity for more input on the rule, EBSA said in a news release.  

Specifically, the agency anticipates revising provisions of the rule including, but not restricted to: clarifying that fiduciary advice is limited to individualized advice directed to specific parties, responding to concerns about the application of the regulation to routine appraisals (see “Law Firm Supports Making ESOP Valuators Fiduciaries“), and clarifying the limits of the rule’s application to arm’s length commercial transactions, such as swap transactions.    

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Also anticipated are exemptions addressing concerns about the impact of the new regulation on the current fee practices of brokers and advisers, and clarifying the continued applicability of exemptions that have long been in existence that allow brokers to receive commissions in connection with mutual funds, stocks and insurance products.   

The agency said it will carefully craft new or amended exemptions that can best preserve beneficial fee practices, while at the same time protecting plan participants and individual retirement account owners from abusive practices and conflicted advice.  

The extended time frame for input will supplement more than 260 written public comments already received, as well as two days of open hearings and more than three dozen individual meetings with interested parties held by the agency (see “SIFMA Does Not Agree with DoL’s Reasoning,” “Fiduciary Policy Should Not “Impede” Common Interactions,” and “Subtracting “Surprise” from the Equation“). The extended rulemaking process also will ensure that the public receives a full opportunity to review the agency’s updated economic analysis and revisions of the rule.   

EBSA said it will continue to coordinate closely with the Securities and Exchange Commission and the Commodities Futures Trading Commission to ensure that this effort is harmonized with other ongoing rulemakings.  

The new proposed rule is expected to be issued in early 2012.  

Deals & People September 19, 2011

Lincoln Financial Distributors Hires Sales Directors

Lincoln Financial Distributors (LFD) has added three regional sales directors to its Institutional Retirement Solutions Distribution (IRSD) team.
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LFD, the wholesale distribution subsidiary of Lincoln Financial Group, hired Greg Hodges, Bryan Hissong, and John Byrne. All three will report to Aaron Moore, National Sales Director of Lincoln’s IRSD team.

Hodges’ territory will include Northern California, Washington, Alaska, Oregon, Utah, Colorado, Montana, Idaho, and Northern Nevada. Hissong will cover Missouri, Kansas, Oklahoma, Texas, and Louisiana. Byrne will be responsible for Ohio, Indiana, Michigan, Wisconsin, and Chicago, Illinois.  

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Hodges has nearly 20 years of retirement sales experience in the financial services industry. Prior to joining LFD, he was Vice President of Sales with Diversified Investment Advisors. He has also served in other retirement sales capacities with Great-West Retirement Services, New York Life Investment Management, ICMA Retirement Corporation, Fidelity Investments, and Wells Fargo.He received a B.A. in management and organizational leadership from George Fox University.

Hissong has more than 20 years of experience in the financial services industry. Prior to joining LFD, he was Vice President of Pension Sales for Prudential Financial, where he was responsible for the sale of full-service defined contribution, defined benefit, and nonqualified plans through advisers and consultants. He was ranked by the company as #1 in adviser-sold sales for 2009 and 2010. He has also worked at Massachusetts Financial Services, AIM Investment Management, and American United Life.  He received a B.S. from Kansas State University. 

Byrne has 15 years of experience in the financial services industry. Prior to joining LFD, Byrne was Vice President of Retirement Plan Sales for Prudential Retirement, where he was responsible for the sale of defined contribution and defined benefit plans through intermediaries to health care, non-profit, government, and Taft Hartley organizations. He has also held a variety of sales roles at Nationwide Retirement Solutions.He received a B.S. in family financial management from Ohio State University. 

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