Image alt tag

Error!

X

There was a problem contacting the server. Please try after sometime.

Sorry, we are unable to process your request.

Error!

X

We're sorry, but the Insights and Intelligence Tool is temporarily unavailable

If this problem persists, or if you need immediate assistance, please contact Customer Service at 1-888-522-2388.

Error!

X

We're sorry, but the Literature Center checkout function is temporarily unavailable.

If this problem persists, or if you need immediate assistance, please contact Customer Service at 1-888-522-2388.

Tracked Funds

You have 0 funds on your mutual fund watch list.

Begin by selecting funds to create a personalized watch list.

(as of 12/05/2015)

Pending Orders

You have 0 items in your cart.

Subscribe and order forms, fact sheets, presentations, and other documents that can help advisers grow their business.

A verification Email Has Been Sent

Close

An email verification email has been sent to .
Follow the instructions to complete the email validation process.

I have not received my verification email

Check your SPAM mailbox and make sure that twelcome@lordabbett.com is allowed to send you mail.

I'm still having trouble

If you're still having trouble verifying your email address. feel free to contact us.

1-888-522-2388
clientservices@lordabbett.com


OK

We're sorry. We found no record of the email address you provided.

Close

Register For a LordAbbett.com Account
Using Your Email Address.

  • Registered Financial Advisors gain access to:
  • Our data mining tool, Insight & Intelligence
  • Best in-class practice management content
  • Educational events, videos and podcasts.
  • The Lord Abbett Review - Subscribe now!

Registered but Having Problems?

If you believe you are registered and are having problems verifying your email address, feel free to contact us.

1-888-522-2388 clientservices@lordabbett.com

Terms & Condition

X

These Terms of Use ("Terms of Use") are made between the undersigned user ("you") and Lord, Abbett & Co. ("we" or "us"). They become effective on the date that you electronically execute these Terms of Use ("Effective Date").

A. You are a successful financial consultant that markets securities, including the Lord Abbett Family of Funds;

B. We have developed the Lord Abbett Intelligence System (the "Intelligence System"), a state of the art information resource that we make available to a limited community of broker/dealers through the Internet at a secure Web site (the "LAIS Site"); and

C. We wish to provide access to the Intelligence System to you as an information tool responsive to the demands of your successful business pursuant to these Terms of Use. Accordingly, you and we, intending to be legally bound, hereby agree as follows:]

1. Overview. · Scope. These Terms of Use (which we may amend from time to time) govern your use of the Intelligence System. · Revisions; Changes. We may amend these Terms of Use at any time by posting amended Terms of Use ("Amended Terms of Use") on the LAIS Site. Any Amended Terms of Use will become effective immediately upon posting. Your use of the Intelligence System after any Amended Terms of Use become effective will be deemed to constitute your acceptance of those Amended Terms of Use.We may modify or discontinue the Intelligence System at any time, temporarily or permanently, with or without notice to you. Purpose of the Intelligence System. The Intelligence System is intended to be an information resource that you may use to contribute to your business research. The Intelligence System is for broker/dealer use only; it is not to be used with the public in oral, written or electronic form. The information on the Intelligence System and LAIS Site is for your information only and is neither the tax, legal or investment advice of Lord Abbett or its third-party sources nor their recommendation to purchase or sell any security.

2. Your Privileges. · Personal Use. Your use of the Intelligence System is a nontransferable privilege granted by us to you and that we may deny, suspend or revoke at any time, with or without cause or notice. · Access to and Use of the Intelligence System. The User ID and password (together, an "Access ID") issued by us to you (as subsequently changed by you from time to time) is for your exclusive access to and use of the Intelligence System. You will: (a) be responsible for the security and use of your Access ID, (b) not disclose your Access ID to anyone and (c) not permit anyone to use your Access ID. Any access or use of the Intelligence System through the use of your Access ID will be deemed to be your actions, for which you will be responsible. · Required Technology. You must provide, at your own cost and expense, the equipment and services necessary to access and use the Intelligence System. At any time, we may change the supporting technology and services necessary to use the Intelligence System. · Availability. We make no guarantee that you will be able to access the Intelligence System at any given time or that your access will be uninterrupted, error-free or free from unauthorized security breaches.

3. Rights in Data. Our use of information collected from you will be in accordance with our Privacy Policy posted on the LAIS Site. Our compliance with our Privacy Policy will survive any termination of these Terms of Use or of your use of the Intelligence System.

4. Your Conduct in the Use of the Intelligence System. You may access, search, view and store a personal copy of the information contained on the LAIS Site for your use as a broker/dealer. Any other use by you of the Intelligence System and the information contained on the LAIS Site these Terms of Use is strictly prohibited. Without limiting the preceding sentence, you will not: · Engage in or permit any reproduction, copying, translation, modification, adaptation, creation of derivative works from, distribution, transmission, transfer, republication, compilation or decompilation, reverse engineering, display, removal or deletion of the Intelligence System, any portion thereof, or any data, content or information provided by us or any of our third-party sources in any form, media or technology now existing or hereafter developed, that is not specifically authorized under these Terms of Use.

· Remove, obscure or alter any notice, disclaimer or other disclosure affixed to or contained within the Intelligence System, including any copyright notice, trademark and other proprietary rights notices and any legal notices regarding the data, content or information provided through the Intelligence System.

· Create a hyperlink to, frame or use framing techniques to enclose any information found anywhere on the LAIS Site without our express prior written consent.

· Impersonate any person, or falsely state or otherwise misrepresent his or her affiliation with any person in connection with any use of the Intelligence System.

· Breach or attempt to breach the security of the Intelligence System or any network, servers, data, or computers or other hardware relating to or used in connection with the Intelligence System; nor (b) use or distribute through the Intelligence System software or other tools or devices designed to interfere with or compromise the privacy, security or use of the Intelligence System by others or the operations or assets of any person.

· Violate any applicable law, including, without limitation, any state federal securities laws. 5. Your Representations and Warranties. You hereby represent and warrant to us, for our benefit, as of the time of these Terms of Use and for so long as you continue to use the Intelligence System, that (a) you are, and will continue to be, in compliance with these Terms of Use and any applicable laws and (b) you are authorized to provide to us the information we collect, as described in our Privacy Policy.

6. Disclaimer of Warranties.

· General Disclaimers.

THE INTELLIGENCE SYSTEM, THE LAIS SITE AND ALL DATA, INFORMATION AND CONTENT ON THE LAIS SITE ARE PROVIDED "AS IS" AND “AS AVAILABLE” AND WITHOUT ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND. WITHOUT LIMITING THE PRECEDING SENTENCE, LORD ABBETT, ITS AFFILIATES, AGENTS, THIRD-PARTY SUPPLIERS AND LICENSORS, AND THEIR RESPECTIVE EMPLOYEES, CONTRACTORS, DIRECTORS, OFFICERS AND SHAREHOLDERS (COLLECTIVELY, THE “LORD ABBETT GROUP”) EXPRESSLY DISCLAIM ALL WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND NONINFRINGEMENT. YOU EXPRESSLY AGREE THAT YOUR USE OF THE LAIS SITE, THE INTELLIGENCE SYSTEM, AND THE DATA, INFORMATION AND CONTENT PRESENTED THERE ARE AT YOUR SOLE RISK AND THAT THE LORD ABBETT GROUP WILL NOT BE RESPONSIBLE FOR ANY (A) ERRORS OR INACCURACIES IN THE DATA, CONTENT AND INFORMATION ON THE LAIS SITE AND THE INTELLIGENCE SYSTEM OR (B) ANY TERMINATION, SUSPENSION, INTERRUPTION OF SERVICES, OR DELAYS IN THE OPERATION OF THE LAIS SITE OR THE INTELLIGENCE SYSTEM.

· Disclaimer Regarding Investment Research.

THE INTELLIGENCE SYSTEM INCORPORATES DATA, CONTENT AND INFORMATION FROM VARIOUS SOURCES THAT WE BELIEVE TO BE ACCURATE AND RELIABLE. HOWEVER, THE LORD ABBETT GROUP MAKES NO CLAIMS, REPRESENTATIONS OR WARRANTIES AS TO THE ACCURACY, TIMELINESS, COMPLETENESS OR TRUTHFULNESS OF SUCH DATA, CONTENT AND INFORMATION. YOU EXPRESSLY AGREE THAT YOU ARE RESPONSIBLE FOR INDEPENDENTLY VERIFYING YOUR INVESTMENT RESEARCH PRIOR TO FORMING YOUR INVESTMENT DECISIONS OR RENDERING INVESTMENT ADVICE. THE LORD ABBETT GROUP WILL NOT BE LIABLE FOR ANY INVESTMENT DECISION MADE BY YOU OR ANY OTHER PERSON BASED UPON THE DATA, CONTENT AND INFORMATION PROVIDED THROUGH THE INTELLIGENCE SYSTEM OR ON THE LAIS SITE.

· Survival.

THIS SECTION 6 SHALL SURVIVE ANY TERMINATION OF THESE TERMS OF USE OR YOUR USE OF THE INTELLIGENCE SYSTEM..

7. Limitations on Liability.

NONE OF THE MEMBERS OF THE LORD ABBETT GROUP WILL BE LIABLE TO YOU OR ANY OTHER PERSON FOR ANY DIRECT, INDIRECT, INCIDENTAL, CONSEQUENTIAL, PUNITIVE, SPECIAL OR EXEMPLARY DAMAGES (INCLUDING LOSS OF PROFITS, LOSS OF USE, TRANSACTION LOSSES, OPPORTUNITY COSTS, LOSS OF DATA, OR INTERRUPTION OF BUSINESS) RESULTING FROM, ARISING OUT OF OR IN ANY WAY RELATING TO THE INTELLIGENCE SYSTEM, THE LAIS SITE OR YOUR USE THEREOF, EVEN IF THE LORD ABBETT GROUP HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THIS SECTION 7 WILL SURVIVE ANY TERMINATION OF THESE TERMS OF USE OR YOUR USE OF THE INTELLIGENCE SYSTEM.

8. Miscellaneous Provisions.

· Governing Law. This Agreement will governed by and construed in accordance with the laws of the State of New York, without giving effect to applicable conflicts of law principles.

THE UNIFORM COMPUTER INFORMATION TRANSACTIONS ACT OR ANY VERSION THEREOF, ADOPTED BY ANY STATE, IN ANY FORM ("UCITA") WILL NOT APPLY TO THESE TERMS OF USE. TO THE EXTENT THAT UCITA IS APPLICABLE, THE PARTIES HEREBY AGREE TO OPT OUT OF THE APPLICABILITY OF UCITA PURSUANT TO THE OPT-OUT PROVISION(S) CONTAINED THEREIN.

The Intelligence System is not intended to be used by consumers, nor are the consumer protection laws of any jurisdiction intended to apply to the Intelligence System. You agree to initiate and maintain any action, suit or proceeding relating to these Terms of Use or arising out of the use of the Intelligence System exclusively in the courts, state and federal, located in or having jurisdiction over New York County, New York.

YOU HEREBY CONSENT TO THE PERSONAL JURISDICTION AND VENUE OF THE COURTS, STATE AND FEDERAL, LOCATED IN OR HAVING JURISDICTION OVER NEW YORK COUNTY, NEW YORK. YOU AGREE THAT YOU WILL NOT OBJECT TO A PROCEEDING BROUGHT IN YOUR LOCAL JURISDICTION TO ENFORCE AN ORDER OR JUDGMENT OBTAINED IN NEW YORK.

· Relationship of Parties. The parties to these Terms of Use are independent contractors and nothing in these Terms of Use will be construed as creating an employment relationship, joint venture, partnership, agency or fiduciary relationship between the parties.

· Notice. All notices provided under these Terms of Use will be in writing and will be deemed effective: (a) when delivered personally, (b) when received by electronic delivery, (c) one business day after deposit with a commercial overnight carrier specifying next day delivery, with written verification of receipt, or (d) three business days after having been sent by registered or certified mail, return receipt requested. We will only accept notices from you in English and by conventional mail addressed to: General Counsel Lord, Abbett & Co. 90 Hudson Street Jersey City, N.J. 07302-3973 We may give you notice by conventional mail or electronic mail addressed to the last mail or electronic mail address transmitted by you to us.

· Third-Party Beneficiaries. The members of the Lord Abbett Group are third-party beneficiaries of the rights and benefits provided to us under these Terms of Use. You understand and agree that any right or benefit available to us or any member of the Lord Abbett Group hereunder will also be deemed to accrue to the benefit of, and may be exercised directly by, any member of the Lord Abbett Group to the extent applicable.

· Survival. This Section 8 will survive any termination of these Terms of Use or your use of the Intelligence System. The undersigned hereby signs these Terms of Use. By electronically signing and clicking "Accept" below, these Terms of Use will be legally binding on me. To sign these Terms of Use, confirm your full name and enter your User ID and Password (as your electronic signature) in the fields indicated below and click the “I Accept” button.

Reset Your Password

Financial Professionals*

Your password must be a minimum of characters.

Confirmation Message

Your LordAbbett.com password was successully updated. This page will be refreshed after 3 seconds.

OK

 

Practice Management

The final version of the memorandum that President Trump signed did not actually include a provision to hold up the regulation. It's still game on.

This Practice Management article is intended for financial advisors only (registered representatives of broker/dealers or associated persons of Registered Investment Advisors).
 

Once President Donald Trump won the election, it was widely believed that it would be a matter of time before he issued an executive order to delay April’s rollout of the Department of Labor's (DoL) fiduciary rule.

Yet, the final version of the memorandum that the president signed on February 3 did not match the originally circulated draft, and it did not actually include a provision to delay the regulation after all, despite wide reporting to the contrary.

In fact, the final issuance was not an executive order at all but a presidential memorandum. The key difference was that the section that would have proclaimed a 180-day delay for the fiduciary rule was eliminated, along with any direct guidance to the DoL about seeking a stay to the rule given the ongoing lawsuit.

What It Says (and Doesn’t Say)
Notably, nothing in the final version of this memorandum actually delays the fiduciary rule. (It appears that the original plan to seek a delay had been to rely on the authority of 5 USC 705 to postpone the effective date of the rule. However, the final rule already went effective last year, technically on June 7, 2016, after the requisite 60-day review period under the Congressional Review Act had closed.)

The looming April 10th date is merely the applicability date on which key provisions of the rule will be enforced. There is no legal authority to delay.

Instead, the memorandum actually directs the Labor secretary to undertake a new “economic and legal analysis” to evaluate whether the looming applicability date of the fiduciary rule has harmed investors through a reduction of Americans’ access to retirement products and advice, whether it has resulted in dislocations of the retirement services industry (that may adversely affect investors), or whether the rule is likely to cause an increase in litigation and the prices that investors must pay to gain access to retirement services.

To the extent that the new analysis reveals problems, the Labor secretary is directed to “publish for notice and comment a [new] proposed rule rescinding or revising the rule.”

In other words, all President Trump has actually done is to direct the Labor secretary to begin a new rulemaking process.

Yet Another Rule to Come?
The reality is that conducting such an analysis, and issuing a new proposal, and running a notice-and-comment period, is no small feat.

Bear in mind that the DoL issued its proposed rule in April 2015, and took almost exactly a full year to complete the notice and comment period, gather the feedback and issue a final rule.

Also, bear in mind it took four and a half years to develop that proposed rule, from the original proposed rule in the fall of 2010 (which in turn had its own notice and comment period).

In other words, it took the DoL about five and a half years, across multiple phases, to issue a final rule.

Yet, in this case, the DoL has almost exactly two months. And President Trump’s Labor secretary nominee, Andrew Puzder, still hasn’t even been confirmed. The Wall Street Journal reports his confirmation hearing has been delayed “indefinitely” due to questions about his ethics and financial paperwork. At the same time, Anthony Scaramucci, who was advocating against the rule, may not get the top role advising President Trump as was previously expected. That means, the timeline is not only very tight but it may not even be clear who’s leading the charge.

Remaining Options to Delay
Notwithstanding this challenge, Acting Secretary of Labor Ed Hugler did issue a brief statement just hours after President Trump signed the official memorandum, stating that the DoL “will now consider its legal options to delay the applicability date.”

Still, as it stands today, the rule still has not been delayed, and the White House appears to have directly acknowledged that it doesn’t have the authority to delay the rule at this point, given its decision to remove the 180-day delay language from the final version the president signed.

There are still a few potential tactics that could result in at least a partial delay, including:

1) Invite a stay from the court on one of the pending lawsuits. The first option: The DoL, facing lawsuits, could invite the court to stay the case—and potentially the rule, ostensibly while it further formulates its legal defense and/or begins to go through the proposal and notice-and-comment periods. The end result might be at least a temporary delay in the applicability of the rule.

However, there is still debate about whether this could actually delay the applicability date (or just the legal proceedings up until the applicability date hits), and this legal tactic could not be used indefinitely. In some reasonably timely manner, the courts would still expect the case to resume. While the tactic might be attempted, it’s still unclear whether the stay could last long enough to actually undertake the requisite economic and legal analysis, to draft a new proposed rule, to complete the notice and comment period, and actually finalize a new alternative version of the rule (or rescind it altogether).

In addition, a ruling is expected in the coming week on what is arguably the biggest DoL fiduciary lawsuit, a consolidation of those filed by the U.S. Chamber of Commerce, SIFMA, ACLI, NAIFA, and more—and, obviously, requesting a stay in the case is a moot point once the ruling is issued.

2) An expedited proposed rule that suspends/extends applicability date. The second option is that the Labor Department could try to hurry through its economic and legal analysis, and then quickly propose a revised rule making perhaps just minor changes, including pushing back the applicability date. This would still appear to require the DoL to issue public notice and complete a comment period, and then get a final rule issued, all by April 10, which may not be administratively feasible. Or at least, to complete its legal and economic analysis (perhaps focusing on the “easiest” point of contention, which is the third clause about the fiduciary rule causing an increase in litigation), issue a proposed rule for notice and comment, and then try to delay the applicability date of the old rule pending completion of the notice and comment period of the newly proposed rule.

Pushing through a rule change so quickly, though, even if just for a change as minor as an adjustment to the applicability date, invites at least the potential of a legal challenge from the fiduciary advocates that the change was too hasty, arbitrary, and capricious, and in violation of the Administrative Procedures Act; after all, many industry companies are suing the DoL claiming that its five-and-a-half-year rulemaking process since 2010 was “too hasty”—so it would be more than a little ironic for the DoL to now complete a rule-change process (which includes a delay) in barely two months.

Expect a lot of people on both sides of the issue to be scrutinizing the Administrative Procedures Act, trying to figure out exactly how far into a new rule-making process the DoL has to go in order to legitimately delay the applicability date of the already-effective rule.

3) A legislative fix from Congress. The only other viable option to entirely halt the rule would be an act of Congress. However, the Democrats still have enough votes in the Senate to filibuster the legislation. And with Senator Elizabeth Warren issuing a letter to banks asking whether any have proceeded far enough in their fiduciary implementation that they’d like it to move forward without delay, and reissuing its report cataloguing the “salacious” sales incentives/prizes offered to annuity agents selling into retirement accounts, it appears that the Democrats are still prepared to fight to keep this particular rule on the books (especially since there’s a clear endgame—they just have to make it to the April 10th applicability date, and then all firms will have had to comply, and legislation to delay the applicability date will be a moot point).

Overall, the biggest problem to delaying the rule remains that all of these strategies take time, and with the final applicability date just two months away, financial institutions have to continue to fully prepare for the possibility that the rule won’t actually be stopped.

And, of course, the closer we arrive toward the applicability date, and the more actual compliance processes and systems are implemented, the less relevant it is to actually delay the rule anyway, because at some point, all the firms will have fully implemented their new compensation structures and compliance procedures anyway, which can’t be turned off quickly (in the same way that it’s taken a full year of intense development work at many firms just to get those systems up to speed in time).

The Path from Here
The irony of how President Trump’s intervention has played out is that his delaying-executive-order-that-wasn’t has angered the fiduciary advocates who are characterizing the potential rollback as a consumer loss, while the firms that have opposed the rule find themselves facing even more uncertainty above whether the Trump administration is really aiming to stop or delay the rule, or simply begin a rulemaking process to alter it at some point in the future.

Certainly, at a minimum, if the rule is not delayed, the groundwork clearly is being laid to at least alter the rule later.

In fact, the guidance in the presidential memorandum to “rescind or revise” (emphasis mine) already clearly contemplates the potential that the end game will be making adjustments to the fiduciary rule after it becomes applicable. And from that context, there still will be another battle waged between those for and against the rule, about this next round of potential changes. Possibilities include whether the extent of conflict-of-interest disclosures might be lessened, a potential widening of the best interests contract exemption, and especially the possibility that the DoL eliminates, or at least alters the provision requiring that firms using the best interests contract exemption must have agreements that leave the door open to a class-action lawsuit against them.

In any event, though, the bottom line is simply this: it’s still game on when it comes to the fiduciary rule.

Of course, even if the rule is fully implemented, there is now a material risk that it will be altered and watered down later (and still potentially before its full enforcement date at the start of 2018). And there’s still the possibility that it won’t even make it to the April 10th finish line before a new rulemaking process begins to replace it with something less threatening to the industry, as there are tactics that its opponents can still deploy between now and then. Nonetheless, the one most popular option to stop the rule from rolling out—for the president to simply intervene and delay the rule—appears to be definitively off the table now (though it really never was a viable option), and while the other options remain, they will take time to implement—when there just isn’t much time left.

—Michael Kitces
Michael Kitces, a Financial Planning contributing writer, is a partner and director of wealth management for Pinnacle Advisory Group in Columbia, Md., co-founder of the XY Planning Network, and publisher of the planning blog Nerd’s Eye View.

sourcemedia_group
RELATED TOPICS

Please confirm your literature shipping address

Please review the address information below and make any necessary changes.

All literature orders will be shipped to the address that you enter below. This information can be edited at any time.

Current Literature Shipping Address

* Required field