On Monday, the U.S. Labor Department (“DOL”) announced that it is delaying its fiduciary rule proposal until next year. The DOL is seeking to expand the definition of fiduciary under the Employee Retirement Income Security Act (“ERISA”) to include everyone who gives retirement advice. Expanding the definition of fiduciary would mean that everyone who gives retirement advice would always have to act in the best interest of the client.
The DOL is delaying this proposal to “allow an opportunity for more input on the rule.” One of the things the DOL will be looking at is how this new fiduciary standard will impact the fee practices of investment advisers and broker-dealers.
Stay tuned to RIA Compliance Consultants for further updates on this issue.