914.630.2324 | Client Login

Fiduciary Duities and Regulation

Fiduciary Duities and Regulation

Employer Retirement Plans are subject to some of the strictest laws and regulations applicable to the financial services industry. For example, The Department of Labor (DOL) requires that plan sponsors review their service providers every three years. In recent years, regulatory changes such as the DOL’s service-provider fee-disclosure requirements are elevating the importance of these reviews.

At the same time, the DOL has expressed concern about potential conflicts of interest that may arise when advisors who are not fiduciaries provide investment support to qualified retirement plans. The current regulatory environment favors the transparency and full disclosure requirements of a registered investment advisor (RIA) structure as compared to a brokerage platform.

Why Peck Wealth Managment?

As a Registered Investment Advisor we are regulated by the SEC based on the fiduciary standard of care and loyalty and must act in the best interest of each client. Alternatively, a broker is only required to follow the suitability standard, meaning the investment product must be suitable based on the profile and objective of the client. Unlike a brokerage structure, we do not earn commissions tied to products. Our compensation is solely based on the market value of the assets and allows us to offer objective advice to plan sponsors and participants.

Diversification is an explicit requirement of ERISA and a fundamental investment concept aimed at limiting large losses to the plan and participants. Over time, a well-diversified portfolio is a more consistent and reliable method to grow assets under a wide range of economic conditions. PWM’s retirement plan clients benefit from our portfolio management expertise which is centered around the most important factors of diversification. Our independence, experience and diligence enable us to select from a world of investment offerings on behalf of corporate retirement plans.