The Department of Labor (DOL) has recently introduced a pivotal update to what constitutes investments advice under ERISA, more commonly referred to as the fiduciary rule. The DOL’s stated goal in crafting a new and updated rule has been aimed at enhancing the integrity of financial advice provided to retirement savers and enhancing retirement security of Americans by reducing conflicted advice around retirement assets. This rule is critical in the context of the shifting dynamics of retirement planning in America, where individuals are increasingly responsible for their own retirement savings, with less reliance on pensions and Social Security. The rule is also far simpler and narrower than a 2016 DOL fiduciary rule that was eventually struck down by the 5th Circuit for being overly broad. With the rule set to go into effect in September of 2024 (and some provisions starting in 2025), what does all of this mean for investors?
Expanded Definition of Fiduciary Level Investment Advice
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