A little known Department of Labor regulation has the potential to expand the reach of investment advice, improve its quality and untap a substantial flow of retirement money in motion.

So says Lou Harvey, head of the financial services market research firm Dalbar, with respect to ERISA 408(g), an exemption that permits advisors to use a certified computer model for advice delivery and be absolved of any fiduciary liability.

Under current law, an advisor serving the retirement plan market must disclose whether he is a fiduciary. Non-fiduciaries—which are the norm in the wirehouse broker-dealer world—are in a quandary, Harvey told AdvisorOne. "If they go to their plan sponsors and say 'We don't give you advice and I'm not a fiduciary, the obvious question is 'Why are you here?'"

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