By Suzanne Cosgrove
The Department of Labor this week issued a final rule that defines the role of an investment advice fiduciary for purposes of Title I and Title II of ERISA, categorizing a person as an investment advice fiduciary if they provide recommendations to investors on a regular basis as part of their job, or if they represent that they are acting as a fiduciary under Title I or Title II of ERISA, or both.
The investment recommendations also must be provided “for a fee or other compensation, direct or indirect” as defined in the final rule, the DOL said.
The Department said the updated final rule better reflects the text and the purposes of ERISA and better protects the interests of retirement investors, compared with the previous regulatory definition, which was last finalized in 1975.
Read the rest of the story and other securities news from Wolters Kluwer at VitalLaw.com.