DOL to Propose New Fiduciary Rules

The White House today announced that in the coming months, the Department of Labor will propose a new fiduciary rule that, according to the announcement, will:

  • Expand the types of retirement investment advice subject to ERISA’s fiduciary standards.
  • Continue to allow private firms to set their own compensation practices by proposing a new type of exemption from limits on payments creating conflicts of interest that is more principles-based than the current rules. The exemption will still permit many common forms of compensation, such as commissions and revenue sharing, whether paid by the client or the investment firm.
  • Allow advisers to continue to provide general education on retirement saving across employer-sponsored plans and IRAs without triggering fiduciary duties.

The DOL will issue a Notice of Proposed Rulemaking (NPRM) in the coming months.  Then there will be a comment period before the final rule is issued.

icon FACT SHEET: Middle Class Economics: Strengthening Retirement Security by Cracking Down on Backdoor Payments and Hidden Fees | The White House.

Author: Erwin Kratz

Erwin Kratz practices exclusively in the areas of ERISA and employee benefits law, focusing on tax and regulatory matters relating to qualified and nonqualified deferred compensation and welfare benefits.