A 2015 report by the White House Council of Economic Advisors found that retirement accounts were reduced $17 billion a year because of biased advice from financial advisors. The Department of Labor (“DOL”) Fiduciary Rule, set to be enacted this year, seeks to eliminate these losses by placing a fiduciary duty on financial professionals to put the interest of their clients first and eliminate conflict of interest trades – at least when it comes to pre-tax retirement accounts. However, the Rule, previously set to go into effect on April 10, 2017, is facing probable delay and possible rescission. This article provides background on the proposed Fiduciary Rule, discusses how it might impact company Employee Retirement Income Security Act (“ERISA”) plans and provides insight to the Trump Administration’s delay on the rule.
Read More