Proposed DOL Standard Would Greatly Expand Fiduciary Reach

November 14, 2023 by Robert Bloink and William H. Byrnes

After months of anticipation, the Department of Labor has released its revamped investment advice fiduciary definition. Dubbed the “retirement security proposed rule,” the new standard would be used to determine when an advisor would be classified as a fiduciary for liability purposes under the Employee Retirement Income Security Act of 1974.

The new proposal, if finalized, would replace the current five-part test that is used to determine whether an investment advice professional is classified as an investment advice fiduciary. According to the DOL, the revised standard reflects that the retirement savings landscape has fundamentally changed since the five-part test was adopted in 1975.

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Originally Posted at Think Advisor on November 8, 2023 by Robert Bloink and William H. Byrnes.