PTE 2020-02 Compliance: Avoiding Five Common Mistakes

It’s hard to be 100% compliant as a financial advisor in today’s heavily regulated environment! Not only are the SEC and state regulators looking over your shoulder, but now the Department of Labor may soon start enforcing its new rule, PTE 2020-02, which covers investment advisors and brokers. The new rule is meant to align with the SEC’s Regulation Best Interest, and is one more thing to add to your compliance checklist— which means even more tracking, documentation, and paperwork! Broker Dealers and their representatives must have met most of the conditions of PTE 2020-02 by February 1, 2022. These include the written acknowledgments of fiduciary status by both the BD and the representative, disclosure of conflicts and compensation information, the implementation of policies and procedures to mitigate or eliminate conflicts, and annual reporting and certification of compliance. The rest of the PTE’s conditions, those relating to documenting and disclosing specific information regarding rollover recommendations, goes into effect on July 1, 2022. Read the article to make sure you remain compliant.

Most financial advisors are not living up to their fiduciary responsibilities when it comes to retirement accounts. If you’re dreading the increasingly complicated regulatory landscape and the extra time required to stay compliant in all aspects of your business, talk to TAG about how we can work together to free up more of your time.