Phyllis Borzi: DOL’s New Rollover Rules a ‘Reasonable Step Forward’

June 29, 2022 by Melanie Waddell

Phyllis Borzi, the former head of the Labor Department’s Employee Benefits Security Administration under President Barack Obama, sees Labor’s new fiduciary prohibited transaction exemption (PTE) 2020-02, Improving Investment Advice for Workers & Retirees, as “a reasonable step forward” for those firms and their representatives who want to continue to receive conflicted compensation.

But the “basic problem,” Borzi told ThinkAdvisor, “lies with the glaring loopholes in the 5-part test [of ERISA setting out who’s a fiduciary] that allows many to escape fiduciary status and accountability, and that needs to be changed directly.”

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Originally Posted at ThinkAdvisor on June 29, 2022 by Melanie Waddell.