The New DOL Fiduciary Rule: What Advisers Need to Know

Benefits and executive compensation partner Fred Reish and counsel Joan Neri co-authored an article for Investment Advisor Association Today that breaks down the Department of Labor’s (DOL) new fiduciary rule and its implications for investment advisers. 

The authors share that the rule, also known as the Retirement Security Rule, significantly expands the definition of fiduciary advice and its reach to adviser activities. The rule covers a broad range of actions, including advice and recommendations not previously defined by the DOL as fiduciary in nature. 

Further, Reish and Neri note that while simply “educating” an investor on a particular strategy does not constitute a fiduciary role, any recommendations about specific investments would be considered fiduciary under the new rule. 

Reish and Neri recommend advisers begin preparing for the rule as soon as possible. Specifically, they note to review current processes will be consistent with the rule, and that educational and marketing materials do not conflict with the rule once it becomes effective in September.

The full article is available to IAA members.