(Reuters) Monday, Sept. 19, 2011 — The U.S. Department of Labor on Monday withdrew a controversial proposal to subject financial professionals to a higher standard of care when advising companies on their retirement plans, bowing to pressure from securities industry groups and lawmakers.
The Labor Department, which has jurisdiction over retirement plans, said it will repropose the rule early next year. As currently written, it would have imposed a fiduciary standard that requires brokers and other advisers to put their clients’ interests first as opposed to merely providing suitable advice.
