The much-anticipated rule that provides a new definition of who is a fiduciary was released by the Department of Labor this week to much fanfare. And while most people agree there wont be much impact on plan sponsors, there are passionate groups on both sides of the aisle fighting for or against this new proposal.
The goal of the proposal is to protect individuals from conflicts of interest in the retirement investment marketplace. Under the proposal, retirement advisers will be required to put a clients best interests before their own profits. Those who wish to receive payments from companies selling products they recommend and forms of compensation that create conflicts of interest will need to rely on one of several prohibited transaction exemptions, according to the DOL.
