Those signing letters asking the DOL’s Employee Benefits Security Administration to delay changing the definition include four top-ranking Republicans, who are either the chairmen or the ranking members of key House and Senate committee. Four members of the Missouri House delegation, two Republicans and two Democrats, sent one letter. Eight House Democratic members also sent a letter.
The DOL proposal seeks to update a fiduciary definition that was developed in 1975. Critics of the existing definition say it is so complicated that it excludes some advisors who clearly have violated obligations to act in the client’s best interest.
Other critics say the proposed revision could turn ethical, law-abiding advisors into accidental fiduciaries by creating fiduciary relationships in instances in which there is no written contract establishing an advisor as a fiduciary; and in which the advisor does not appear to be engaging in activities that traditionally would have made an advisor a fiduciary.
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.