Fred Reish Discusses New DOL Rule With Pensions & Investments

Benefits & executive compensation partner Fred Reish spoke with Pensions & Investments on the new DOL fiduciary rule, in which the biggest change concerns the definition of an investment advice fiduciary.

In the likely legal battle to come, a court will have to weigh if the department’s new fiduciary definition captures the essence of a fiduciary relationship.

“Is there enough meat there that a court could look at it and say, ‘Yeah, if somebody does all that they’re a fiduciary,’” Reish said. “Or would a court looking at that say, ‘Nah, it’s a bunch of pretty words but it just defines a commercial relationship.’ That’s where the rubber hits the road. And that will be what’s litigated. And how the court will decide, nobody knows.”

Reish added, “Obviously the DOL thinks it works or they wouldn’t have done it. And the people on the other side of the case, the financial services industry, are going to argue that it just defines a commercial relationship.”

The full article is available to Pensions & Investments subscribers.