04.14.21
DOL Releases Guidance on Trump-Era Fiduciary Rule
by: Mark, Jr. Schoeff
The DOL released guidance on Tuesday that reinforces that a regulation governing investment advice in retirement accounts will strengthen oversight of rollover recommendations and require investment advisors to mitigate conflicts of interest. The guidance relates to a Trump administration fiduciary rule that the Biden DOL allowed to become effective in mid-February. In a set of frequently asked questions, the DOL said that a recommendation to rollover retirement funds from a company plan to an IRA can be part of an ongoing client-advisor relationship and trigger a fiduciary standard of care. The rule leaves in a place a five-part test that allows wiggle room for financial advisors to get around a fiduciary obligation. But the guidance indicates the DOL will be monitoring rollovers for potential investor harm.
Read the full article on InvestmentNews.