COVID-19 UPDATE: Our attorneys are available to both existing & new clients for virtual consultations.

The Department of Labor takes shot at Broker Fiduciary Rules.

The Department of Labor this week took a step to reignite the debate over if security brokers should be subject to the fiduciary liability rules in the Employee Retirement Income Security Act.

The standards have long been applied to retirement plan advisors – they must put their clients’ interests ahead of their own. Broker-deals, however, are held to lower standard, and critics state that brokers who work on commision steer clients towards plans that make them the highest fees.

A leaked memo outlined some of the proposed regulations, and a top administration advisor for the White House believes that a “Middle Ground” would be achieved, however a ban on commissions tied to sales is unlikely.

Source: Benefitspro.com