A new rule proposes to update the definition of "fiduciary" to more broadly define the term as a person who provides investment advice to plans for a fee or other compensation. The Department of Labor's Employee Benefits Security Administration (EBSA) published this proposed rule in the Federal Register last week.
According to the proposal, the current rule's approach to fiduciary status may inappropriately limit the department's ability to protect plans, participants, and beneficiaries from conflicts of interest that may arise from today's diverse and complex fee practices in the retirement plan services market.
The proposed rule would alter this limitation, and protect plan officials and participants who expect unbiased advice, by giving a broader and clearer understanding of when individuals providing such advice are subject to ERISA's fiduciary standards, according to the EBSA press release.
More information on this proposed regulation is available on EBSA's website.
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