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Compliance Alert - DOL Updates and Cash/Check Acceptance Reminder 8.4.17
August 28,2017 /
1. Attached please find a copy of the recently released FAQ from the DOL regarding 401ks. For those of you with 401ks, the DOL is not stressing
enforcement measures between now and the end of the year. We will need to work on updating 408(b)(2) disclosures for 401ks by the beginning
of the year, if the DOL rule fully is implemented January 1, 2018.
DOL states that the following is not considrered providing fiduciary advice to 401(k) participants:
* Encouraiging participants to make plan contributions
* Encouraging participants to increase their contributions
* Recommend/suggest to plan administrator to increase employees' participation in or level of contributions to the plan -- recommendation cannot
state a specific investment product
2. With the DOL Rule and qualified accounts, we are required to send out a notice to clients relative to the DOL Rule. I condensed the DOL portion
to 2 pages (it previously was about 5 pages). We plan to send this out in the September 2017 RBC statement (annual required notices will also
be included). It will also be sent to direct accounts from Decatur closer to the end of August/beginning of September. The wording in the DOL
disclosure letter may be subject to change before it is mailed out. Please let me know if you have any questions.
3. Common sense reminder - non-family member clients should not give you cash or write checks payable to either yourself or your Outside Business
Activity. If this happens, please return the cash immediately and in the case of a check, please send a copy of the check to Operations and
then return the check to the client requesting the check be made payable to the correct custodian (Operations has a form letter that can be
provided to you --- this must be sent back to the client within 24 hours to avoid taking custody of the check). These processes are supervisory
controls relative to advisors and client funds. We highly doubt that this has/will occur, but this alert is a good reminder in case you encounter
this situation. Any questions, please let me know.