Brad Campbell Discusses DOL 401(k) Investment Advice With Bloomberg Law

In “Time’s Ticking on 401(k) Fiduciary Rule Redo at Labor Department,” Bloomberg Law turned to benefits and executive compensation partner Brad Campbell for insight on the Department of Labor (DOL) redefining its 401(k) investment advice and a series of legal battles regulators have lost, which is narrowing the parameters of the new regulation.

“Right now, we get the impression that they want to move this rule before the end of the Biden administration, but the reality is, they’re running out of time for that,” said Campbell.

The publication reported that a proposed rule would have to go through two rounds of White House review and a formal notice-and-comment process. The final rule could easily take more than a year before it takes effect, Campbell noted, which could leave it vulnerable to a congressional challenge.

Bloomberg Law also explained that courts in New York and Florida have said rollover recommendations aren’t necessarily fiduciary conduct if advice extends outside the confines of the plan, while a similar challenge awaits a Texas federal district court judge’s ruling. “I think a lot of folks are assuming that the Texas court will reach a decision similar to the Florida court,” Campbell added.

The full article is available for Bloomberg Law subscribers.