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.

The New Fiduciary Rule: Rollovers and the Insurance License Issue

The definition of investment advice in the regulation includes recommendations about "securities or other investment property" which includes life insurance with an investment component and annuities. Under both PTE 84-24 and PTE 2020-02, a compliant rollover recommendation generally requires the consideration of the investments, services, and expenses in the retirement plan. As a result, the question has been raised about whether an insurance-licensed only insurance agent can legally "consider" a plan's investments, as is required by the PTEs.

Source: Fredreish.com, July 2024

The New Fiduciary Rule: Qualified Annuity Exchanges

A fiduciary recommendation to exchange "qualified annuities" is subject to the new fiduciary rules. In this article, Fred Reish discusses the requirements in NAIC Model Regulation #275 and the similarities and differences between the Model Rule and the PTE requirements.

Source: Fredreish.com, July 2024

Republican Congressmen Rail Against Biden Administration's Fiduciary Rule

Saying the Biden Administration's "overly restrictive" fiduciary rule put forth by the DOL "will only complicate financial planning with burdensome overregulation," authors of the Congressional Review Act Joint Resolution of Disapproval recently introduced in the House and Senate seeking overturn the rule, this week contributed an op-ed in the Washington Examiner explaining their rationale.

Source: 401kspecialistmag.com, July 2024

Insurers Respond to DOL to Forward Fiduciary Rule Lawsuit

A group of insurers seeking to halt the DOL's Retirement Security Rule from taking effect has responded to a counter-filing by the regulator alleging that "changes" the department made from a 2016 fiduciary proposal are not enough to make the 2024 proposal viable.

Source: Planadviser.com, July 2024

The New Fiduciary Rule: The Fiduciary Acknowledgment

The Impartial Conduct Standards and the Fiduciary Acknowledgment disclosure are effective September 23, 2024. The remaining conditions in the PTEs are effective on September 23, 2025. This article discusses the fiduciary acknowledgment.

Source: Fredreish.com, July 2024

Lawsuit vs. ESG Investing in 401k Plans Marks Courts' First Test After Chevron Ruling

A lawsuit challenging a Biden administration rule permitting socially conscious investing by employee retirement plans will test the courts' approach to federal regulations following a pivotal Supreme Court decision. The New Orleans-based 5th US Circuit Court of Appeals will hear arguments from 25 Republican-led states opposing the DOL's rule on Tuesday, reported Reuters.

Source: Investmentnews.com, July 2024

Fiduciary Rule Fate Clouds in Wake of SCOTUS Chevron Doctrine Ruling

The U.S. Supreme Court's 6-3 decision last week in Loper Bright Enterprises v. Raimondo to overturn the Chevron doctrine -- a central doctrine of administrative law that had stood since 1984 -- could very well derail the DOL's Retirement Security Rule. The Court held that Chevron, which grants significant deference to agency interpretations of federal statutes, conflicts with the Administrative Procedure Act's command that courts, not agencies, are to "decide all relevant questions of law" and "interpret statutory provisions."

Source: 401kspecialistmag.com, July 2024

House Committee Vote on "Stop Biden's Fiduciary Rule" Set

A resolution to disapprove the DOL's "Retirement Security Rule" could come up for a full floor vote of the House of Representatives before long if a House committee passes the resolution during a vote on Wednesday in Washington, D.C.

Source: 401kspecialistmag.com, July 2024

The Retirement Security Rule: Designed for Permanency?

This article outlines the DOL's objectives and enhancements to the definition of fiduciary investment advice in the final rule, and how it differs from the proposed rule and the vacated 2016 fiduciary rule. It also discusses the final rule's potential impact on investors and investment professionals who are currently subject to the existing regulatory landscape. The article also addresses related prohibited transaction exemptions that form the regulatory package, and how the package aims to level the playing field and provide clear and equal application of fiduciary protections in rendering investment advice.

Source: Truckerhuss.com, July 2024

The New Fiduciary Rule: Confusion About Incentive Compensation

The DOL's fiduciary regulation will be effective on September 23 of this year. While some of the requirements of PTEs 2020-02 and 84-24 also become effective on September 23, others will not be effective until a full year later on September 23, 2025. Both PTEs have provisions limiting incentive compensation and some have taken that to mean that incentive compensation is prohibited. That is not the case.

Source: Fredreish.com, July 2024

DOL ERISA Fiduciary Changes

The DOL's new fiduciary rule significantly expands the circumstances under which a person could be treated as providing investment advice that is subject to the ERISA fiduciary standards. Until we have a final decision on the rule, as plan sponsors, you should review your service agreements and reach out to your financial service providers to ensure that they are planning on complying with the new rules, including full disclosure of any potential conflicts of interest when this is settled.

Source: Consultrms.com, July 2024

Could SCOTUS Chevron Decision Undermine Fiduciary Rule?

With far-reaching implications -- likely including the DOL's fiduciary rule -- the nation's highest court has set aside a long-standing judicial deference to federal regulators in interpreting the law. While the full implications will take time to emerge, it's almost certainly going to produce more litigation, and in the process, less certainty for advisors, plan sponsors, and recordkeepers trying to operate within those boundaries.

Source: Asppa.org, July 2024

CFP Board Backs DOL Fiduciary Rule in Federal Court

Writing in an amicus, the CFP Board cautions that "If the Court accepts Plaintiffs’ arguments, then this will leave open significant regulatory gaps that allow advisors to recommend financial products, including insurance products, that are not in the best interests of retirement investors, in contravention of [ERISA's] mandate to provide a high level of protection for retirement assets."

Source: Napa-net.org, June 2024

What Plan Sponsors Should Know About DOL's Final Fiduciary Rule

While the direct effect of the DOL's final fiduciary rule on plan sponsors appears modest, plan vendors may decide to modify their service models -- including associated fees -- and sales practices. This is a comprehensive review of the rule including implications for plan sponsors.

Source: Mercer.com, June 2024

DOL Files Counter-Brief to Retirement Security Rule Challenge

The DOL answered one of two open lawsuits in the federal courts challenging the Retirement Security Rule on June 14. The regulator's first response in court argued that the new rule is compliant with existing case law and is substantially different from a 2016 regulation that was vacated by the U.S. 5th Circuit Court of Appeals.

Source: Planadviser.com, June 2024

First Lawsuit Filed Against DOL Over New ERISA Investment Advice Regulations

Texas-based insurance industry plaintiffs, including a nonprofit trade group, have filed the first lawsuit to challenge the DOL's recently issued final regulations that broaden the definition of fiduciary under ERISA. The plaintiffs allege that the regulations exceed DOL's authority under ERISA, the Internal Revenue Code, and the Administrative Procedure Act. They also claim that the rule and transaction amendments violate the APA because they are arbitrary, capricious, and incompatible with ERISA and the IRC.

Source: Hallbenefitslaw.com, June 2024

The New Fiduciary Rule: Confusion about Annual Retrospective Reviews

The DOL's new fiduciary regulation will be effective on September 23, 2024. Parts of the PTEs will be effective on that date also, but other parts will not be effective until a year later -- September 23, 2025. Unfortunately, this split of the effective dates has created a considerable amount of confusion about what needs to be done and when it needs to be done. This article discusses one of those issues, the annual retrospective review and report.

Source: Fredreish.com, June 2024

DOL Releases New ERISA Fiduciary Rule

The DOL on April 23, 2024, issued the Retirement Security Rule, which expands who qualifies as an investment advice fiduciary for purposes of ERISA. Under the ERISA fiduciary rules currently in effect, there is a plethora of investment professionals who are not subject to ERISA's fiduciary safeguards. The DOL indicated that the new rule and amended PTEs will close the loopholes that permitted certain investment professionals to avoid ERISA's fiduciary standards.

Source: Hklaw.com, June 2024

Are You a Fiduciary? The New Definition of an Investment Advice Fiduciary

This article addresses the definition of an "investment advice fiduciary" under ERISA, the DOL's official interpretation of the definition from 1975 through 2024, the policies underlying the DOL's transition to the new Retirement Security Rule, the requirements of the rule, and the impact thereof on businesses, investors, and plan sponsors. The article also examines the Retirement Security Rule's chance of survival in the face of current legal challenges.

Source: Bsk.com, June 2024

DOL Fiduciary Rule Challenge Gains More Support

The Hispanic Leadership Fund has filed an amicus brief in support of a suit brought by the Federation of Americans for Consumer Choice and others that "seeks to grant the motion to stay the Rule's effective date and to issue a preliminary injunction." It follows another amicus brief filed last week by the U.S. Chamber of Commerce in support of the legal challenge.

Source: Napa-net.org, June 2024

Jerry Schlichter Preps Advisors for Fiduciary Rule Changes: Podcast

Jerry Schlichter, founding and managing partner of Schlichter Bogard LLC and a well-known pioneer of retirement plan excessive fee litigation, visits the 401k Specialist Podcast to share some important insights on the upcoming changes, legal challenges and what advisors need to be doing to prepare for compliance.

Source: 401kspecialistmag.com, June 2024

TIAA Retirement Suit Foreshadows Future 401k Rule Litigation

A New York federal district court ruling tying TIAA to the alleged misconduct of its clients offers a rare glimpse at the upturned legal landscape awaiting pension servicers when a new 401k advice rule takes effect.

Source: Wagnerlawgroup.com, June 2024

Major Differences Between DOL's Proposed and Final ERISA Investment Advice Regulations

The DOL's final regulations broaden the definition of fiduciary under ERISA to include more investment advisors. However, the eight hundred pages of final regulations, which consist of a final rule and three sets of amendments to ERISA prohibited transaction exemptions, contain crucial differences from the proposed regulations. Therefore, despite the significant expansion contained in the rule, the DOL did retreat from some of its original proposals.

Source: Hallbenefitslaw.com, June 2024

The New Fiduciary Rule: The Education Exception

Not every communication with retirement investors is a recommendation. There are three notable exceptions in the new fiduciary rule, two of which are discussed in the preamble to the regulation: education and "hire me." This article by Fred Reish discusses the DOL's position on investment and retirement education.

Source: Fredreish.com, June 2024

Understanding the Department of Labor Final Fiduciary Rule

The final fiduciary rule expands the definition of who is an investment advice fiduciary to provide investment advice to a plan or an IRA under ERISA and the Internal Revenue Code. The DOL also made changes to several prohibited transaction exemptions available to investment advice fiduciaries, including the Prohibited Transaction Exemption 2020-02, which the DOL intends to be the primary source of relief for investment advice fiduciaries going forward.

Source: Fidelity.com, June 2024

The DOL Fiduciary Rule Is Here: Are You an Investment Advice Fiduciary?

Where for decades there was a five-part test that made a distinction between sales activity and ongoing, individualized investment advice that was relied upon by an investor as a primary basis for investment, the new definition now tries to cover all persons who interact with an investor and make a recommendation for an investment in a way that a reasonable investor might think they are acting as a fiduciary. The regulation now encompasses both individual retirement accounts and single rollover transactions.

Source: Carltonfields.com, June 2024

The New Fiduciary Rule and Amended PTE 2020-02: Effective Date Considerations

With the DOL's new fiduciary advice rule, many advisors will need the protection provided by Prohibited Transaction Exemption 2020-02 to receive the conflicted compensation resulting from the fiduciary advice. The DOL amended PTE 2020-02 at the same time as the new fiduciary rule; however, the effective date for some of the PTE's conditions is delayed. This article describes the effective dates that apply to PTE 2020-02.

Source: Brokerdealerlawblog.com, June 2024

DOL's Retirement Security Rule: Six Things Advisors Should Know

In April 2024, the DOL issued the final version of its Retirement Security Rule which imposes an ERISA fiduciary standard. Staying informed about and compliant with the new Rule is crucial for financial professionals to uphold ethical standards, maintain client trust, and operate successfully within the industry. Here are some questions and answers to help break down some of the key changes as well as a checklist to aid in complying with the new rule.

Source: Manning-Napier.com, June 2024

The New Fiduciary Rule: The "Hire Me" Exception

Not every conversation with retirement investors is a recommendation under the DOL's new fiduciary rule. There are three notable exceptions, two of which are discussed in the preamble to the regulation: education and "hire me." This article discusses the "hire me" exception.

Source: Fredreish.com, May 2024

The Fiduciary Rules and the Impact on Advisors and Insurance Agents

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 podcast, Fred and Brad look at the new fiduciary rules and their impact on advisors and insurance agents.

Source: Spotlightonbenefits.com, May 2024

Nine Insurance Trade Groups File Suit Against DOL's New Fiduciary Proposal

The DOL went into the Memorial Day weekend with a fresh lawsuit seeking to undo its Retirement Security Rule filed by nine insurance trade associations. The associations filed the suit in the U.S. District Court for the Northern District of Texas, which is within the jurisdiction of the Fifth Circuit Court of Appeals. The associations cited the Fifth Circuit in the complaint because several years ago the court overturned a prior rule DOL intended to change the definition of what it means to give fiduciary advice for retirement investments.

Source: Planadviser.com, May 2024

DOL's Hauser "Comfortable" New Fiduciary Rule Addresses Prior 5th Circuit Rebuttal

The DOL's new Retirement Security Rule was designed with the U.S. 5th Circuit Court of Appeals rebuttal of a prior fiduciary proposal in mind, an official noted to the American Bar Association, a day after an insurance agent advocacy group filed a motion to pause the rule while litigation plays out.

Source: Planadviser.com, May 2024

FACC Files Second Lawsuit Against DOL Fiduciary Rule

The FACC, along with other independent insurance agents, filed the preliminary injunction in the U.S. District Court for the Eastern District of Texas. The suit argues that if applied, the new fiduciary rule would cause "dire consequences for tens of thousands of independent insurance agents and their clientele if not stopped." Therefore, its implementation should be delayed until the first lawsuit is settled, plaintiffs maintained.

Source: 401kspecialistmag.com, May 2024

The DOL's Final Fiduciary Rule: What Private Fund Managers Need to Know

The DOL's final fiduciary rule is considerably narrower in scope from the rule the DOL adopted in 2016 since it limits fiduciary status to recommendations made by persons who effectively hold themselves out as occupying a position of trust and confidence to a retirement investor. This should make the final rule less disruptive for managers of private funds such as private equity, credit, real estate, and hedge funds than the 2016 rule, but there are certain important points for managers to focus on. This article focuses on the practical impacts of the final rule on such private fund managers.

Source: Ropesgray.com, May 2024

Plaintiffs File Lawsuit Challenging DOL's Amendment of ERISA's Advice Fiduciary Rule

On May 2, 2024, a group of plaintiffs filed a complaint against the DOL challenging the validity of DOL's recently finalized amendment to the ERISA advice fiduciary regulation. This article highlights key claims plaintiffs are making in this case: that DOL's imposition of the general ERISA fiduciary obligations of prudence and loyalty on IRA advisers and its refusal to provide a carve-out for brokers as mere salespersons cannot be supported by the statute and that the 2024 amendment to the rule must be vacated.

Source: Octoberthree.com, May 2024

Challenges and Opportunities in the New Fiduciary Marketplace

A panel on day two of the Broadridge 360 Advisor Summit offered guidelines for new and experienced retirement plan advisors wanting to better understand the DOL's fiduciary rule. Here, Jason Roberts of the Pension Resource Institute discusses how the fiduciary rule will impact seasoned and emerging professionals.

Source: 401kspecialistmag.com, May 2024

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

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