COLLECTED WISDOM™ on the DOL and SEC Fiduciary Rules

This archive contains not only the most current material on the topic, but also older items that are still relevant, provide background, perspective or are germane to the topic.

If you find a broken link or an items that you feel is outdate, irrelevant or no longer appropriate, please let us know.

Other topical areas you may find of interest include Fiduciary Responsibility and Liability Issues and Fiduciary Related News and Intelligence.

New DOL Fiduciary Rule: Top Five Facts Advisers Should Know

The new fiduciary rule, or officially the Retirement Security Rule, is effective September 23, 2024, and casts a wide net that could cause one-time recommendations about a retirement account to be considered a fiduciary act. In this article, ERISA experts from Faegre Drinker Biddle & Reath provide five facts registered investment advisers need to know about the DOL's new Retirement Security Rule.

Source: Planadviser.com, May 2024

401k Rule Suit Echoes Past Legal Attack on Obama-Era Version

The DOL's newest fiduciary rule finalized in late April prompted a swift legal response from insurance industry stakeholders, who sued on May 2 in the US District Court for the Eastern District of Texas to block and vacate it and an accompanying amended prohibited transaction exemption. The plaintiffs are following a similar playbook to litigants who successfully convinced an appeals court to vacate a previous iteration of the standard six years ago.

Source: Wagnerlawgroup.com, May 2024

Bills to Nullify the Retirement Security Rule Proposed in Congress

Members of the House and Senate introduced companion bills under the Congressional Review Act that would nullify the Department of Labor's Retirement Security Rule. The rule was finalized in April and would subject one-time transactions such as annuity sales and rollovers to fiduciary obligations under ERISA.

Source: Plansponsor.com, May 2024

Unpacking the DOL's Final Retirement Security Rule: A Guide for Plan Sponsors

The DOL's recent final Retirement Security Rule has significant implications for plan sponsors and fiduciaries. At the heart of this rule is the amended Prohibited Transaction Exemption 2020-02, which provides relief from prohibited transaction treatment for conflicted fiduciary advice, subject to stringent conditions. As a plan sponsor, it's crucial to understand how this PTE impacts your fiduciary duties and responsibilities. This comprehensive analysis delves into the details of PTE 2020-02.

Source: Octoberthree.com, May 2024

A Long and Winding Road: DOL's Final Rule 4.0

On April 23, 2024, the DOL released its Final Rule 4.0 regarding ERISA fiduciary investment advice, including amended exemptions for conflicted investment advice. The effects of the Final Rule for plan sponsors will primarily be indirect, reflected in the availability and delivery of plan- and participant-level services from third-party financial services providers. In the near term, however, the initial effective date is September 23, 2024, and existing agreements were not grandfathered, which may lead to substantial renegotiation or replacement activity over the balance of the year.

Source: Eversheds-Sutherland.com, May 2024

The Newest and Final Fiduciary Rule

The release of the final rule, reviewed here, marks another step in a long-running saga. The DOL's proposal released last October received nearly 20,000 public comments and petitions. The new rule is expected to receive significant public commentary and potential legal challenges. Plan sponsors should seek to understand the scope of the current relationships that may fall under these requirements.

Source: Callan.com, May 2024

Fred Reish Unpacks the DOL's New Fiduciary Rule: Podcast

The DOL released its final Retirement Security Rule recently, which aims to raise the legal bar for financial advisors, brokers, insurance agents, and others who give retirement investment advice. Noted ERISA attorney Fred Reish shares his thoughts on some of the rule's key focuses and changes, along with implementation questions and potential hurdles to the rule becoming effective in September.

Source: 401kspecialistmag.com, May 2024

DOL's New Investment Advice Fiduciary Rule and Related Exemption Amendments

On April 25, 2024, the DOL's new fiduciary investment advice rule, restyled as the "Retirement Security Rule," was published in the Federal Register, amending a rule that has been unchanged since it was first published in 1975. Also on April 25th, DOL published a package of amended prohibited transaction class exemptions. Through this package, DOL seeks to modernize ERISA's rules to reflect the significant changes that have occurred in the retirement investor space in the almost 50 years since ERISA was passed in 1974.

Source: Wagnerlawgroup.com, May 2024

401k Advice Rule Puts New Fiduciaries in Litigation Crosshairs

A newly finalized rule from the DOL is poised to spur a new crop of suits under federal employee benefits law over alleged fiduciary breaches by defendants who previously weren't held to the strictest standard of care in handling retirement savers' funds. Lawsuits focusing on the extent to which an insurance agent, broker-dealer, or another party becomes a fiduciary by giving investment advice for a fee, a matter that hasn't been litigated frequently in federal courts, could emerge from the new fiduciary standard, according to benefits lawyers.

Source: Wagnerlawgroup.com, May 2024

DOL Issues Final Amendment Broadly Expanding Definition of Investment Advice Fiduciary

The DOL made several changes from the 2023 proposed rule in response to comments it received and went to great lengths to distinguish the new rule from its 2016 rule, which was vacated by the 5th Circuit Court of Appeals. Still, on May 2, 2024, the new rule was challenged in the Eastern District of Texas. This article highlights the significant changes from the 2023 proposed rule.

Source: Seyfarth.com, May 2024

What the Fiduciary Rule Means for Investment Menu Advisement

The Retirement Security Rule, finalized in April by the DOL, will require that investment menu designs and sales must follow the obligations of loyalty and prudence under ERISA. Previously, transactions of this kind were often considered one-time transactions and therefore not a fiduciary act. Jason Roberts, the CEO of the Pension Resource Institute, says that this element of the final rule should be an "easy lift from a compliance perspective" and "less disruptive operationally" for retirement plan advisers and providers.

Source: Planadviser.com, May 2024

DOL Expands Investment Advice Subject to Fiduciary Liability

Following previous failed attempts to expand the fiduciary liability of financial services providers, the DOL released a new rule that broadens the definition of fiduciary under ERISA. Plan sponsors should review their service agreements and reach out to their financial services providers to ensure that they come into compliance with the new rule, including full disclosure of any potential conflicts of interest.

Source: Pillsburylaw.com, May 2024

DOL Issues Final Amendment Broadly Expanding Definition of Investment Advice Fiduciary

The DOL made several changes from the 2023 proposed rule in response to comments it received and went to great lengths to distinguish the new rule from its 2016 rule, which was vacated by the 5th Circuit Court of Appeals. Still, on May 2, 2024, the new rule was challenged in the Eastern District of Texas. This article highlights the significant changes from the 2023 proposed rule.

Source: Seyfarth.com, May 2024

First Challenge of the DOL Investment Advice Fiduciary Final Rule

The fiduciary rule regulations are already being challenged by an advocacy group for independent insurance professionals claiming that the final rule creates heavy compliance burdens and hurts their ability to make commissions by unlawfully turning insurance agents into ERISA fiduciaries. The DOL responded to these and other numerous comments during the regulatory process and made certain changes and clarifications discussed in this article that narrow the contexts in which a covered recommendation will constitute ERISA fiduciary investment advice.

Source: Cohenbuckmann.com, May 2024

DOL Finalizes PTE 2020-02 Amendments

This Groom Law Group article provides an overview of the amendments to PTE 2020-02. In addition to changing PTE 2020-02, DOL also changed the definition of investment advice and other exemptions, prompting financial institutions and distributors who had not previously used PTE 2020-02 to rely on it.

Source: Groom.com, May 2024

DOL Finalizes PTE 84-24 Amendments

Under the DOL's 2024 final Fiduciary Rule, insurance producers and other persons who recommend annuity and insurance products in transactions involving ERISA plans and IRAs are generally categorized as advice fiduciaries. These investment advice fiduciaries require relief from the prohibited transaction restrictions of ERISA and/or the Code to cover their receipt of commissions and other third-party paid compensation. Relief under PTE 84-24 is available to "Independent Producers" concerning fiduciary recommendations of annuities and other insurance products that are not "securities" under Federal securities laws.

Source: Groom.com, May 2024

DOL Finalizes Changes to Other Exemptions Through Mass Amendment

This Groom Law Group article provides an overview of the amendments to PTEs 77-4, 75-1, 80-83, and 86-128. Those currently relying on these exemptions when providing investment advice will require significant changes to compliance structures.

Source: Groom.com, May 2024

DOL Fiduciary Rule Hit With First Lawsuit

The first of potentially many lawsuits against the DOL's fiduciary rule has been filed. The Federation of Americans for Consumer Choice, along with several independent insurance agents, filed a lawsuit on Thursday in the U.S. District Court for the Eastern District of Texas located in the city of Tyler, Texas. In a statement, the FACC says that by implementing a new Retirement Security Rule, the DOL has violated the Fifth Circuit's 2018 rule that had vacated the department's previous 2016 fiduciary legislation.

Source: 401kspecialistmag.com, May 2024

DOL Finalizes Its Most Recent Definition of an Investment Advice Fiduciary

On April 25, 2024, the DOL published the Retirement Security Rule: Definition of an Investment Advice Fiduciary. The 2024 Fiduciary Rule defines when a person is considered a fiduciary under Title I and Title II of ERISA in connection with providing investment advice or making an investment recommendation to a retirement investor. In addition to the 2024 Fiduciary Rule, the DOL also finalized amendments to certain Prohibited Transaction Exemptions to reflect the DOL's updated definition of an investment advice fiduciary. Here is a review of the key provisions and aspects of the rule.

Source: Winston.com, May 2024

Advisers Compliant With Reg BI are Compliant With Fiduciary Rule, EBSA Says

Ali Khawar, the principal assistant secretary for the Employee Benefits Security Administration, explained in a webinar on Monday that advisers compliant with the Securities and Exchange Commission’s Regulation Best Interest rule could use the same policies and procedures to comply with the newly finalized Retirement Security Rule.

Source: Planadviser.com, May 2024

ICI Statement on DOL Final Fiduciary Rule

The Investment Company Institute released this statement after the DOL released the final rule to amend the regulatory definition of "investment advice fiduciary" under ERISA.

Source: Ici.org, May 2024

The New Fiduciary Rule: The Final Rules Have Arrived

The final versions of the DOL's fiduciary regulation and the amended PTEs have been published in the Federal Register. The regulation and exemptions will be effective and applicable on September 23 of this year. However, some of the requirements (called "conditions") of Prohibited Transaction Exemptions (PTEs) 2020-02 and 84-24 will not be effective until September 23, 2025. As a result, broker-dealers, investment advisers, banks, and insurance companies need to begin the work on compliance so that compliant practices and disclosures are in place by September 23. That's just months from now.

Source: Fredreish.com, May 2024

Goodbye "Five-Part Test": DOL Finalizes New Investment Advice Fiduciary Rules

On April 23, 2024, the DOL issued final rules that expand what it means to provide fiduciary "investment advice" under ERISA and Section 4975 of the Internal Revenue Code of 1986. Though the final rules broaden the definition of "investment advice," the circumstances under which advice will be covered are narrower than in the proposed rules released last year. Here are a few quick takeaways.

Source: Erisapracticecenter.com, April 2024

DOL Final Fiduciary Rules Could Resolve Conflicting Interests in Target-Date Funds

Target-Date Funds have three interest groups: investment managers, fiduciaries, and beneficiaries. The interests of these three groups are not aligned, but the new DOL fiduciary rules could change that. Ron Surz warns TDF participants will be the big losers in the next market correction unless they start using personalized target-date accounts.

Source: 401kspecialistmag.com, April 2024

Eight Important Changes in DOL's Final Fiduciary Rule

The DOL released the Retirement Security Rule, informally known as the fiduciary rule, to great fanfare on Tuesday, including a press conference and White House ceremony. Now that it has been released, what changes does the final rule make to the proposed rule? Here are eight important items.

Source: Napa-net.org, April 2024

Proposed Changes to PTE 2020-02 that Impact Broker-Dealers

The DOL has proposed amendments to its regulation defining fiduciary advice so that, in most cases, a single recommendation to a retirement investor will be a fiduciary act. In addition, the DOL has proposed amendments to Prohibited Transaction Exemption 2020-02, which provides relief for prohibited conflicts of interest. This article focuses on the proposed amendments that will impact broker-dealers and their registered representatives.

Source: Brokerdealerlawblog.com, April 2024

DOL to Issue Final Fiduciary Rule on Tuesday

The DOL will announce its final fiduciary rule on Tuesday afternoon, according to the American Retirement Association. The ARA confirmed on Monday that acting Secretary of Labor Julie Su will announce the final regulation in a Treaty Room ceremony at 5 p.m. ET.

Source: 401kspecialistmag.com, April 2024

Viewpoint: The DOL's Hurried Fiduciary Rule Poses Lasting Harm to Investors

Elena Barone Chism, Deputy General Counsel, Retirement Policy, at ICI, writes, "Regrettably, the Department of Labor is rushing to finalize a fiduciary advice rule that threatens to roll back that progress. If implemented, the rule would lead to fewer choices in the marketplace and less access to financial advice and guidance -- losses that would fall heaviest on middle-class investors."

Source: Ici.org, April 2024

The Department of Labor's Fiduciary Proposals

The final rule has been approved by the OMB and may be publicly available as early as May 1. The changes significantly impact both financial professionals and the financial institutions they represent. However, the impact will be greatest on the distribution of annuities, and regulatory attention is particularly focused on fixed-indexed annuities.

Source: Faegredrinker.com, April 2024

Final Fiduciary Rule Coming Soon as OMB Completes Review

The White House Office of Management and Budget indicated on its website that as of Wednesday, April 10, it has concluded its review of the DOL's Retirement Security Rule. While it is unclear at this point exactly when the DOL will announce the final rule, when it does, the public will get its first look at any revisions made as a result of an enormous amount of feedback.

Source: 401kspecialistmag.com, April 2024

OMB Concludes Fiduciary Rule Review, DOL Release Expected Soon

The White House's Office of Management and Budget has completed its review of the Retirement Security Rule, and it is expected to be released by the Department of Labor by the end of the month, according to reliable sources. The OMB concluded its review and removed the rule from its regulatory review dashboard on April 10.

Source: Napa-net.org, April 2024

The New Fiduciary Rule: Changes to PTE 2020-02 Affecting Financial Institutions

The proposed regulation will cause many more people and firms to be fiduciaries when they make "investment" recommendations to retirement investors. This article by Fred Reish discusses the changes that affect financial institutions.

Source: Fredreish.com, April 2024

Gomez: DOL Fiduciary Rule Seeks to "Level the Playing Field"

The bottom line with the DOL's controversial fiduciary rule, currently under review at the White House Office of Management and Budget, is that it seeks to level the playing field to protect retirement investors. That's what Lisa Gomez, the DOL Assistant Secretary for EBSA, told attendees during the opening general session at the 2024 NAPA 401k Summit.

Source: 401kspecialistmag.com, April 2024

The New Fiduciary Rule: Changes to PTE 2020-02 Affecting the Advisor

The first, and current, version of Prohibited Transaction Exemption 2020-02 was effective in December 2020. In November of 2023, the DOL proposed amendments to PTE 2020-02 in connection with its proposed regulation expanding the definition of fiduciary advice to retirement investors, private sector retirement plans, participants in those plans, and IRA owners. This article discusses the proposed changes to PTE 2020-02 that will affect individual advisors and agents.

Source: Fredreish.com, April 2024

The New Fiduciary Rule: Robo Advice and Robo Conflicts

Under the current PTE 2020-02, the exemption relief is not extended to "pure" robo-advisers. Instead, only "hybrid" robo-advisers can provide non-discretionary fiduciary advice to retirement investors where the advice is conflicted. However, when the proposed amendments to the PTE become final and applicable, compensation resulting from conflicted nondiscretionary advice will be permitted if the conditions of the exemption are satisfied. This article discusses robo advice under PTE 2020-02.

Source: Fredreish.com, March 2024

Managing Fiduciary Conflicts in the Age of Convergence

In recent years, retirement plan advisers for Employee Retirement Security Act plans and advisers for wealth management clients have joined forces within the same firm. Among the many challenges involved with integrating these two practices is complying with the fiduciary and prohibited transactions of ERISA and section 4975 of the Internal Revenue Code when providing advisory services to clients. ERISA expert David Kaleda discusses what the DOL's proposed Retirement Security Rule may mean for retirement and wealth management firms.

Source: Planadviser.com, March 2024

The DOL Fiduciary Rule Requires a Recommendation. What Is That?

The DOL's proposed fiduciary regulation includes a new and expanded definition of when a representative of a broker-dealer, investment adviser, bank, or insurance company will become a fiduciary under ERISA and the Internal Revenue Code. The new definition starts with whether a "recommendation" has been made. This article discusses the definition of "recommendation."

Source: Fredreish.com, March 2024

Route to Success: Setting a Course of Action Prior to the DOL Fiduciary Rule 4.0

This is the presentation material from a program where Eversheds Sutherland attorneys Issa Hanna, Carol McClarnon, and Mark Smith provide practical steps to consider before the DOL's Fiduciary Rule proposal becomes final in the coming months.

Source: Eversheds-Sutherland.com, March 2024

The Fiduciary Rule: Effective Date and Lawsuits

In this podcast series of updates, Fred Reish and Brad Campbell offer a high-level view of current trends and recent ERISA developments. In this newest episode (about 23 minutes), they discuss The Fiduciary Rule: Effective Date and Lawsuits.

Source: Spotlightonbenefits.com, March 2024

Slide Deck From Presentation on the DOL's Fiduciary Rule: The Impact on Recommendations of Annuities

Faegre Drinker discusses the DOL's proposed fiduciary regulation and its amendments to Prohibited Transaction Exemptions 84-24 and 2020-02 and their anticipated impact on annuity sales. These proposed rules, to be finalized this year, will impose significant requirements on recommendations of annuities to retirement investors -- ERISA and tax-qualified private-sector retirement plans, participants and IRA owners -- including recommendations for rollovers and transfers.

Source: Faegredrinker.com, March 2024

DOL Sends Fiduciary Rule to Office of Management and Budget

The Office of Management and Budget (OMB) received the fiduciary rule, listed as Retirement Security Rule: Definition of an Investment Advice Fiduciary, from the DOL on March 8. The OMB will review its costs and benefits within 90 days. However, the compressed two-month period in which the DOL finalized the rule has industry watchers predicting that the OMB will also move quickly in its review.

Source: Asppa.org, March 2024

Expect a Stronger, More Lawsuit-Proof Fiduciary Rule Very Soon

The DOL continued its fast-track pace on its fiduciary rule, sending a final version to the White House last week that will likely be released in a matter of weeks. Lawyers who have been carefully reviewing the fiduciary rule say that it's not likely that the Department of Labor will change much from the contentious proposed version of the rule and its prohibited transaction exemptions. The department is racing ahead to make it difficult for Congress or a new president to undo the rule.

Source: Investmentnews.com, March 2024

Past is Prologue: DOL Proposes to Change the Definition of "Investment Advice"

On November 3, 2023, the DOL published in the Federal Register its proposed, Retirement Security Rule: Definition of an Investment Advice Fiduciary. In this article, Groom principal David Kaleda covers the DOL's 1975 fiduciary rule, changes made to the rule in 2016, and the changes proposed in 2023.

Source: Groom.com, March 2024

DOL Sends Final Fiduciary Rule to OMB

On March 8, 2024, the DOL sent a final version of the Retirement Security Rule: Definition of an Investment Advice Fiduciary to the Office of Management and Budget for review. OMB review is typically the final stage of the regulatory process before the publication of a final rule and can take anywhere from a few days to several months.

Source: Groom.com, March 2024

Investment Advice to Plans and Participants and Litigation Risks

While plan sponsors are generally the focus of litigation, retirement plan advisors can also be a target of lawsuits for breach of fiduciary duties under ERISA. There has been a recent increase in ERISA claims filed against retirement plan advisors and this article discusses the allegations and the court's conclusions in selected cases.

Source: Napa-net.org, March 2024

The New Fiduciary Rule: Can Wholesalers Become Fiduciaries?

It is well known that the expansive definition of fiduciary in the DOL's proposed regulation will cause many more advisors and insurance agents to be fiduciaries for their recommendations to retirement investors. However, it is less known that the same rules can apply to wholesalers of securities and insurance products.

Source: Fredreish.com, March 2024

Compensation Requirements under Proposed Amendments to PTE 2020-02

Broker-dealers and their registered representatives providing services to private sector tax-qualified and ERISA-governed retirement plans, participants in those plans, and IRA owners are subject to several compensation rules. ERISA's fiduciary responsibility rules mandate that ERISA plans pay no more than reasonable compensation to service providers (including advisors). This article focuses on the compensation limitations in the DOL's proposed amendments to PTE 2020-02.

Source: Brokerdealerlawblog.com, February 2024

Regulation Best Interest and Individual Retirement Accounts

The retirement security proposal, proposed by the DOL in October, would apply fiduciary duties under ERISA to rollovers to individual retirement accounts, among other transactions. Opponents of this proposal say that the SEC's Regulation Best Interest has been regulating these transactions since June 2020, and the DOL proposal is therefore unnecessary. This article reviews what Reg BI requires when it comes to rollovers.

Source: Planadviser.com, February 2024

Five Things to Consider About the Fiduciary Rule Redux

There is a long road from a fiduciary proposal to a rule in force. By now, the proposed new fiduciary rule has been read, digested, analyzed, and the subject of countless articles, webinars, and more. So, where do you go now as an advisor? Advisors may want to look at the new rule through this framework.

Source: Napa-net.org, February 2024

Smaller Accounts, Insurance Product Impact Debated at Hearing on Fiduciary Proposal

Opponents of the Department of Labor's retirement security proposal testified at a Congressional hearing Thursday that the proposal would dramatically decrease access to advice for smaller account holders, while proponents argued it is a necessary regulation to reduce and mitigate investor abuses.

Source: Planadviser.com, February 2024

House Lawmakers Debate Merits of DOL's Proposed Fiduciary Rule

Coming slightly more than a month after its first hearing on the Department of Labor's proposed investment advice fiduciary rule, a second subcommittee of the House of Representatives debated the merits of the proposal, with the battle lines drawn between the two parties. The DOL is currently reviewing the thousands of comment letters that were submitted to it earlier. The DOL's unified agenda does not show a target release date for a final rule.

Source: Asppa.org, February 2024

Retirement Security Proposal Addresses "Significant Gaps," EBSA Official Says

Tim Hauser says the DOL's retirement security proposal, sometimes called the fiduciary proposal, is not the same as the proposal made in 2016, as some critics have suggested. The latest iteration of the proposal has been the subject of widespread debate and controversy since it was first proposed in October. Hauser, the deputy assistant secretary for program operations of the DOL's Employee Benefits Security Administration, offered insight into why the Department of Labor continues to pursue it.

Source: Planadviser.com, February 2024

The DOL Fiduciary Proposal's Impact on Banks and Trust Departments

Take a quick dive into the exciting world of ERISA with Faegre Drinker benefits and executive compensation attorneys Fred Reish and Brad Campbell. In this quick-hit series of updates, Fred and Brad offer a high-level view of current trends and recent ERISA developments. In this newest episode, they look at the DOL's fiduciary proposal's impact on banks and trust departments.

Source: Spotlightonbenefits.com, February 2024

The Fiduciary Rule's Foray Into Uncharted Territory

Generating over 19,000 written comments, the DOL's proposed fiduciary rule changes hit a "vein." Though the proposed changes are complex and multi-tiered, there are two of them that are particularly garnering most of the attention.

Source: Businessofbenefits.com, February 2024

Podcast - DOL Fiduciary Hearings and Comment Letters: Part 1

Take a quick dive into the exciting world of ERISA with Faegre Drinker benefits and executive compensation attorneys Fred Reish and Brad Campbell. In this podcast, Fred and Brad offer a high-level view of current trends and recent ERISA developments primarily around the DOL fiduciary hearings and comment letters.

Source: Spotlightonbenefits.com, January 2024

Regulation May Impact Advisor-Intermediated Rollovers From DC Plans

Retirement plan advisors impart a high degree of influence over 401k participants' decisions related to IRA rollovers. However, as wealth management firms continue to pursue opportunities in ERISA-covered retirement plan space, they will need to navigate and overcome new and pending regulation imposing more stringent fiduciary requirements when recommending IRA rollovers, according to The Cerulli Edge -- U.S. Retirement Edition.

Source: Cerulli.com, January 2024

Fiduciary Rule May Curtail Wealth Managers Pursuing Retirement Planning

A new study by Cerulli Associates looks at how wealth managers must navigate the looming DOL fiduciary rule when recommending individual retirement account rollovers to defined contribution participants. As wealth management firms move into the retirement planning space, more will have to comply with ERISA, and thereby, the pending fiduciary rule proposed by the DOL in October.

Source: 401kspecialistmag.com, January 2024

Oxford Survey Finds DOL May Have Underestimated Compliance Cost of Fiduciary Proposal

A survey conducted by Oxford Economics estimated that the compliance costs associated with the DOL's fiduciary proposal could grossly exceed the estimates provided by the DOL. The survey, commissioned by the Financial Services Institute, estimated that $2.77 billion would be required to come into compliance with the proposal in the first year, whereas the DOL estimated first-year costs to be about $253 million.

Source: Planadviser.com, January 2024

Big Names Back Latest Proposed Fiduciary Rule

While many financial services firms and related trade groups have expressed their opposition, several high-profile firms have come out in support of the latest iteration of the DOL's proposed fiduciary rule. Aggregation firm HUB mirrored certain arguments made by the American Retirement Association in its comment letter supporting the rule (with suggested changes), specifically mentioning the current regulatory gap concerning one-time recommendations to plan sponsors that are not considered fiduciary advice.

Source: Asppa.org, January 2024

Loaded With Teeth and Better Crafted, the Latest 'DOL Rule' Attracts 19,000 Comments

ERISA lawyers are saying that we have the new DOL rule that does much the same as the old, but there's a big difference. The DOL learned its lessons about how to present its case and the language this time is tighter and more threatening to vested interests. That begins to explain how it generated 19,000 comments, including 134 pages from SIFMA, the chief force holding together a wildly huge if fading, coalition of banks, insurers, and brokerages that are determined to make 'suitability' a good enough standard. But it's running out of intellectual and even practical firepower and the battle over the DOL's rule shows that it's even losing ground to slow-footed government bureaucracies.

Source: Riabiz.com, January 2024

Fiduciary Rule: The Timeline for the Final Regulation and Exemptions

The DOL published its proposed fiduciary regulation and prohibited transaction exemptions in the Federal Register on November 3, 2023. That was the beginning of a process that will end with the final rules and their effective and applicability dates. This article is Fred Reish's best guess about the timing of the process to complete the DOL's work.

Source: Fredreish.com, January 2024

Congress Voicing Concerns With DOL Fiduciary Rule Proposal

Many in Congress are joining thousands of the more than 19,000 commenters in voicing concerns with the DOL's controversial proposed "Retirement Security Rule: Definition of an Investment Advice Fiduciary." Fifty bipartisan reps sent a letter urging that the controversial rule be withdrawn, and the House Capital Markets Subcommittee will hold a hearing Wednesday to explore its necessity.

Source: 401kspecialistmag.com, January 2024

Rollover Recommendations Will be Fiduciary Advice. And What About Withdrawals? Podcast

Take a quick dive into the exciting world of ERISA with Faegre Drinker benefits and executive compensation attorneys Fred Reish and Brad Campbell. In this quick-hit series of updates, Fred and Brad offer a high-level view of current trends and recent ERISA developments. This new episode looks at rollover recommendations that will be fiduciary advice, but what about withdrawals?

Source: Spotlightonbenefits.com, January 2024

American Securities Association Says DOL Acting Secretary Cannot Finalize Fiduciary Proposal

The American Securities Association filed a comment letter with the DOL arguing that the fiduciary proposal, also known as the retirement security proposal, is unlawful for a variety of reasons. The letter does not speak directly to the merits of the proposal, but it is a possible preview of many of the legal arguments that will arise in litigation if the rule is finalized.

Source: Planadviser.com, January 2024

EBSA Rejects Requested Delay as Proposed Fiduciary Rule Moves Forward

The DOL's Employee Benefits Security Administration issued a letter rejecting a request for delays in the rulemaking process concerning the expansion of the definition of fiduciary under ERISA. The Securities Industry and Financial Markets Association, American Retirement Association, and various other financial groups previously sent a joint letter to EBSA, requesting that the agency extend the comment period and delay the public hearing regarding the proposed fiduciary rule.

Source: Hallbenefitslaw.com, January 2024

ARA Submits Comment Letter to DOL on Proposed Fiduciary Rule

In their comment letter submitted to the Department of Labor on Jan. 2, 2024, the American Retirement Association expressed support for the department's proposed definition of "fiduciary invest. Advice" and amendments to PTE 2020-02. In the letter, they also shared several specific concerns and recommended revisions.

Source: Asppa.org, January 2024

The Proposed DOL Fiduciary Rule: Significant Changes for Advisers

The DOL's recently issued proposed rule would expand the definition of fiduciary advice to cover many services provided by advisers to retirement plans and IRAs. Under this expanded definition, advisers may need the relief provided by Prohibited Transaction Exemption 2020-02 to avoid a prohibited transaction. The DOL has also proposed amendments to PTE 2020-02. This article describes the proposed fiduciary advice rule and the proposed amendments to PTE 2020-02 and discusses the impact these proposals, if finalized, will have on advisers.

Source: Fredreish.com, December 2023

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