The Department of Labor’s proposed fiduciary rule, which is designed to remove conflicts of interests from advisors to IRAs and most of the country’s 401(k) plans, actually creates a new conflict of interest, according to one analyst.
Aside from the proposal’s explicit carve-outs, such as the best interest contract exemption, seller’s carve out and education carve out, the proposal suggests the DOL is considering another fiduciary exemption.
The “low-fee”exemption, a concept introduced deeper into the proposal’s lengthy layout, would exempt advisors from fiduciary obligations when they recommend cheaper investments to plan sponsors and investors.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
