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Capitalize sees opening to serve RIAs with 401(k) rollover services on heels of DOL fiduciary rule and scores $12.5M from VC firms to make it happen

With DOL all but outlawing RIAs from advising investors from rolling pension assets to IRAs, New York startup that specializes in the hand-off steps into the breach for RIAs.

Author Lisa Shidler
February 25, 2021 at 1:16 AM
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Gaurav Sharma: We've been approached by a number of financial advisors.

Richard M. Allison

Richard M. Allison

February 25, 2021 — 2:37 PM
I agree that the Improving Investment Advice for Workers & Retirees is a little scary at first, but let's review the disclosure requirements. 1) Acknowledge in writing that you (RIA) are a fiduciary. This should already be in your Investment Advisory Agreement. 2) Written description of the services to be provided. Your firm may have a list of these services already, but if not, simply put a list together. One page, perhaps two max. 3) Document the specific reasons for the rollover recommendation. Easily create another one page form listing the specific reasons. (i.e., does not like investment choices, dislikes former firm, wants ongoing investment and financial planning advice, other RIA firm offerings not available in the 401k and etc. That's it for disclosures. Now the bigger issue is the Policies and Procedures incorporating this exemption rule. The Retrospective Review is easy.

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