“The only way to mitigate is to have  strong process in place for making that recommendations and supervision,” Reish warned.

The rule also requires firms and their reps to ensure that compensation is “reasonable.” To accomplish that, the DOL applies a market-based standard, so that anyone recommending a rollover needs to consider whether compensation reflects the value of the services as determined by a competitive marketplace. Firms and reps also need to compare their fees to those of other advisors, preferably by using an acceptable benchmarking service, the attorneys said. 

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