Advisor Blog

Many business owners and 401(k) plan sponsors are scrambling to understand and comply with the new Department of Labor mandated fee disclosure regulations that will become effective only a few months from now. The new regulations explained under sections 408(b)(2) and 404(a) of the Employee Retirement Income Security Act of 1974 (ERISA) require additional disclosures to be made to plan sponsors and plan participants, and require all plan service providers to furnish much more information about their services, expenses and fees. ERISA section 408(b)(2), the service provider rules, become effective April 1, 2012, while the new 404(a) participant disclosure rules become effective May 31, 2012.

This is a very informative and entertaining article by best-selling author Michael Lewis.  It's Labor Day, so print it or download it and enjoy. 

Blaine Lourd was an extremely successful stock broker and, at the height of his career, was an advisor to many well known celebrities.  This is his story.  If you've long suspected that Wall Street puts its own interest ahead of the client's, this will certainly make that belief crystal clear.  But, the article goes beyond the sordid truth about broker behavior and suggests a better business model.  You just may recognize it.