Department of Labor Releases Final Investment Advice Fiduciary Rule

Starting September 23, investment professionals who hold themselves out as trusted advisers will be required to act as fiduciaries — that is, they can’t place their interests ahead of the investor — when clients pay them for advice on 401(k)s, IRAs, and similar types of qualified retirement plans. The changes close loopholes that made it easier for many investment professionals to avoid fiduciary status — including, for example, when workers roll over their savings from a 401(k) plan to an IRA. The new rule aims to level the playing field for all financial professionals, including investment brokers and insurance salespeople, who describe themselves as trusted advisers when providing investment advice about retirement savings.

For more information, click here to check out the Department of Labor’s Fact Sheet: Retirement Security Rule and Amendments to Class Prohibited Transaction Exemptions for Investment Advice Fiduciaries.