Since the DOL released its fiduciary proposal, I’ve been trying to digest it so I can provide any concerns to the DOL during their comment period. This has not been an easy task. The DOL’s proposal is complex. My review got me thinking about DOL regulations in general – why aren’t they less complicated? I think they can be, being more effective in the process.
On February 23, 2015, President Obama announced that the long-awaited redrafting of the DOL’s “fiduciary rule” was being submitted to the Office of Management and Budget (OMB) for review. This rule, also called the “conflict of interest rule for investment advice,” would subject all financial advisors who provide investment advice to retirement plans to a fiduciary (conflict-free) standard of care.
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This month, the DOL is expected to propose a “fiduciary rule” for financial advisors that provide investment advice to retirement plans. This rule, also called the “conflict of interest rule for investment advice,” would subject brokers to the same fiduciary obligations as investment advisers. The DOL proposed a fiduciary rule in 2010, but that proposal was withdrawn in 2011 under heavy pressure from some lawmakers and lobbyists representing the financial services industry.