Rollover Disclosure Form Required - Eff. April 1, 2016
For those of you that missed the monthly webcast last Thursday, Julie and I discussed several disclosures that will be required for certain accounts and transactions in the future. Several of the disclosures were addressed during our SEC audit, so we needed to either resend them to you or develop them for your clients. I will be rolling out the new disclosures this week, which will go into effect on April 1st (not an April Fool's Joke).
The disclosures include:
(1) Leveraged/Inverse ETFs;
(2) Concentrated Positions;
(3) Mutual Fund Switch Letters (this one was a reminder - the original Alert came out in 2014);
(4) Retirement Plan Rollovers and
(5) Brokerage Accounts Converting to Advisory Accounts.
Attached is the first disclosure - Retirement Plan Rollover Disclosure Form. This will be used with opening brokerage or advisory IRA Rollover accounts. This is a hot topic with both the SEC and FINRA. The disclosure must be reviewed and signed by a client rolling over a retirement plan to an IRA with either IPI or IPIWM. You will return the form to Operations with your new account form/advisory agreement. The disclosure also includes the FINRA Investor Alert to provide clients with additional information in making their decision. I would recommend that you go through the disclosure form point by point with your clients so they understand their options, especially in describing the fees and costs associated.
If you have any questions, please let us know. Thanks, Renee
Form - April 2016