The Fiduciary Responsibility eSource
Find Answers to Key Fiduciary  Questions  and
Current ERISA Developments on Your Desktop,
 Smartphone, Laptop, or Other Mobile Device
  • Home
  • Contact
  • Why This Book?
  • Author Biography
  • Testimonials
  • Blog

The Fiduciary Responsibility eSource Has Been Revised to Include Discussion of Newly Proposed DOL Conflicted Advice Rule

4/30/2015

0 Comments

 
Last week the Labor Department published a comprehensive proposal package for changes in the definition of an investment-advice fiduciary under ERISA. The package would expand the range of advice relationships that are treated as fiduciary relationships, substantially revising rules that have been in existence for 40 years.

Plan sponsors and advisers must examine their practices and consider how to adjust their behaviors and their agreements to conform to the new rules. 

In addition to redefining what is an “investment-advice” fiduciary, the Labor Department has included in the package helpful “carve outs’ from the definition, new prohibited transaction exemptions, and proposed amendments of several existing prohibited transaction exemptions. Surprisingly many existing types of arrangements with 401(k) plan sponsors will continue under the new rule, with only minor adjustments. Other arrangements, in particular, one-on-one advice relationships with plan participants or IRA owners may require substantial adjustments in service models.

Comment Period and Hearing

The proposal package is subject to a 75-day public comment period that ends in June 2015 and there will be a public hearing. These procedural steps will lead to one of three results: (1) publication of the package as proposed; (2) publication of the package with changes; or (3) withdrawal of the package.

Applicability Date
If finalized, the new rules will go into effect eight months after they are published in the Federal Register.


For more detailed information on the Labor Department proposal, see The Fiduciary Responsibility eSource at erisapedia.com.
0 Comments



Leave a Reply.

    Author

    Chuck Humphrey, an experienced employee benefits attorney and a a leading exponent of the fiduciary ethos, shares his thoughts on current developments in this important area and provides advice on how to survive life as a plan sponsor, fiduciary,  or plan plan advisor. He can be reached at chumphrey@cghbenefitslaw.com or at 978-688-2162.

    Archives

    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    July 2014

    Categories

    All

    RSS Feed

Powered by Create your own unique website with customizable templates.