Bank 401 Advisor

[ManningP]

I am an Investment Representative employed by a bank in Indiana. The bank is using a financial advisor from an outside firm to handle the thier 401k plan. Does anyone know if there are any rules or regs that would prohibit a banks own investment advisor/department from handling the 401k plan as well as being compensated to do so??

Thanks.

 

[rock78]

outside 401k advisor

It was illegal for a 401k provider to also give investment advice to members of the providers plan until the president of the US signed into law just last week a change that makes it possible for a provider to ALSO provide investment advice to employees of a company that they provide a 401k to.

Now, the bank can hire you , a bank rep. if they choose to give advice on a plan that they sold or administer.