A man is reflected walking past the window of the Charles Schwab headquarters in San Francisco, Monday July 17, 2006. (AP Photo/Eric Risberg)

A new rule regulating fiduciary investment advice won’t necessarily affect the way large 401(k) providers do business, but it will give many smaller companies the opportunity to bundle investment advice as part of their 401(k) and IRA plans.

The regulation, which was finalized by the U.S. Department of Labor’s Employee Benefits Security Administration this week, will allow fiduciary investment advisors to receive compensation from investment vehicles they recommend if the investment they provide is based on a computer model that is certified as unbiased and applies generally to accepted investment theories, or the advisor is compensated on a “level-fee” basis, meaning the fee doesn’t vary based on the investments a participant selects.

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?



Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2023 ALM Global, LLC. All Rights Reserved.