DOL Did Some Scaling Back On Final Rule
April 6, 2016 by Julie Anderson
As expected by some people close to the process, DOL scaled back its final fiduciary rule based on extensive consultation with financial services industry groups, consumer advocates and the public.
Under the new regulation, a fiduciary is defined as any person who receives compensation for providing investment recommendations that are “individualized or specifically directed” to a particular plan sponsor, plan participant or individual retirement account owner. This expansion of fiduciary now covers individuals who own IRAs and/or who are rolling over their 401(k) savings into an IRA.
The final fiduciary rule includes significant changes – both substantive and administrative – that some in the financial services industry are already welcoming.
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