The new rules were supposed to come sooner. Instead, it looks as if it will take yet more work, including a mix of intense lobbying, delicate negotiations and some more nail-biting, before Americans enrolled in retirement plans can be assured the investment advice they receive is delivered with their best interest in mind.
That, at least, is what appears to be the case, based on votes in Congress last week and the latest word from regulators that they’re once more running behind in formulating new fiduciary standards.
Reish doesn’t expect what lies ahead to be easy.
For starters, IRAs have, in fact, always been covered by the DOL’s fiduciary rules, though the IRS has never enforced them, Reish said. “As a result, over the last 30 or 40 years, a lot of practices have been built up about how advice is given and commissions charged to IRAs so that if those rules had been enforced along the way, there could have been a lot of prohibited transactions.”