The Department of Labor is working to reduce the fees and costs in 401(k) plans and make these fees totally transparent. The DOL has broadened the definition of fiduciary, which means that more people who are advising retirement plans, including IRAs, will be held liable as fiduciaries. This new definition includes advisors who are giving advice to a plan on a one-time basis and advisors whose advice does not necessarily serve as a primary basis for plan investment decisions. While I think this will cause the more irresponsible advisors think twice about selling a 401(k) plan, the vast majority will welcome this new definition. They have argued fr years that they do feel they have a fiduciary responsibility to these clients. What will be interesting to see is how this will affect registered reps who are not investment advisors and have sold plans for years.
For more information, click here: Proposed DOL Regs on Fiduciary Responsibility
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