DOL Proposed Rule Expands Definition of Fiduciary Investment Advice

September 01, 2015
Journal of Pension Benefits

On April 14, 2015, the Department of Labor (DOL), released its long-awaited re-proposed rule (the 2015 Proposed Rule) defining when a person will be deemed a fiduciary investment adviser under the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code (Code). [See 80 Fed. Reg. 21928 (April 20, 2015).] The DOL’s proposed rule for a new fiduciary standard will have a far-reaching impact on the retirement services community, and in particular, consultants, broker-dealers, and others that have relied on the existing regulation to shield them from ERISA fiduciary status. This proposal includes significant changes from the 2010 proposed regulation and marks a second DOL attempt to significantly expand ERISA fiduciary status to persons selling or recommending investments in the retail market.

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