Where a New DOL Fiduciary Rule Stands Now
Though the Department of Labor (DOL) has yet to file its new fiduciary rule at the Office of Management and Budget (OMB), observers say the rule appears to be on track to hit OMB any day now. DOL's spring regulatory flexibility agenda signaled that a new fiduciary rule would be released in August, and though such agendas are placeholders and may not reflect the agency's actual timetable, Lisa Gomez, assistant secretary of Labor for the Employee Benefits Security Administration, recently said that issuing a new fiduciary rule was a "huge priority," noting that one should be released soon. According to DOL's reg flex agenda, the conflict of interest in investment advice rule would amend the regulatory definition of the term fiduciary "to more appropriately define when persons who render investment advice for a fee to employee benefit plans and IRAs are fiduciaries within the meaning of section 3(21) of ERISA and section 4975(e)(3) of the Internal Revenue Code." The amendment "would take into account practices of investment advisors, and the expectations of plan officials and participants, and IRA owners who receive investment advice, as well as developments in the investment marketplace, including in the ways advisors are compensated that can subject advisors to harmful conflicts of interest," DOL's notice said.
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