US. Labor Department Finishes Fiduciary Rule for Retirement Plans
The Labor Department completed on Tuesday the Trump administration’s fiduciary rule governing advice affecting the trillions of dollars in retirement accounts.
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But because the regulation won’t go into effect until after President-elect Joe Biden takes office, it is likely to be revised by the new administration.
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“I don’t expect it to survive in its current form,” said Barbara Roper, director of investor protection at the nonprofit Consumer Federation of America.
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The development is the latest in a decadeslong debate over what responsibilities brokers and advisers have to clients when giving investment and other advice in 401(k)-type and individual retirement accounts and how to manage conflicts of interest in the sale of investments in those accounts.
A stricter set of regulations from the Obama administration, which imposed tight limitations on conflicted investment advice, sparked an industry backlash and was struck down by a federal appeals court in 2018.
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