In April, the Department of Labor proposed a new rule to reduce conflicts of interest among retirement plan advice providers. The new rule would expand the definition of fiduciary and change the compensation exemptions, with both changes aimed at making sure that retirement plan investment professionals are providing advice based solely on their clients’ best interests.
More than 330,000 comments on the rule have been submitted, a testament to the significance of the changes the rule proposes. The Department of Labor held public hearings in August to listen to the concerns and comments of stakeholders.
What’s next? A bipartisan letter from 20 members of Congress was recently issued to Labor Secretary Perez to urge the DOL to continue its forward momentum on this proposed rule. Based on the feedback the DOL has received, the agency is likely to propose some amendments to the original proposed rule. In the meantime, a second comment period will open after a transcript of the hearings becomes available.
We are pleased that the DOL continues working to minimize conflicts of interest and hold advisors to a higher fiduciary standard. Because we have always accepted fiduciary responsibility on behalf of our clients, the proposed rule will not impact how we provide advice. Since our inception, providing conflict-free, unbiased investment advice has been our goal, and our fee structure is designed to make sure our interests are fully aligned with our clients’ interests.
You can read the public comments on the proposed rule here:
Visit our previous blog post introducing and explaining the proposed rule here:
Read the DOL’s fact sheet on the proposed rule here: