DOL’s Proposal to Expand Fiduciary Definition Would Bring Many Service Providers Into Scope

May 20, 2015

As we previously reported, the US Department of Labor (DOL) released its reproposed rule “Definition of the Term ‘Fiduciary’; Conflict of Interest Rule—Investment Advice” on April 14.

The initial deadline for comments on the rule was July 6. The DOL recently announced that it intends to extend the deadline by 15 days to fall on or around July 20. The DOL has also announced that it intends to hold a public hearing on the reproposal during the week of August 10.

This White Paper examines the reproposed changes to the definition of an “investment advice fiduciary” for purposes of the Employee Retirement Income Security Act (ERISA) standards of fiduciary conduct and the prohibited transaction rules under ERISA and section 4975 of the Internal Revenue Code (the Code). It also covers the DOL’s six proposed “carve-outs” from fiduciary status. Our next White Paper will cover the proposed Best Interest Contract Exemption and Exemption for Principal Transactions in Certain Debt Securities, as well as the proposed amendments to current prohibited transaction exemptions.

Read the full white paper >>