Commentary: After much anticipation, the Department of Labor unveiled a rule on Tuesday that could establish a fiduciary responsibility for brokers working with retirement accounts. The proposal still has to go through the comment period, but if passed, it promises to be a step toward reducing conflicts of interest while urging advisers to work in the best interest of their clients.
On the 401(k) level, this could hit wirehouses and brokers in the wallet to some degree. It continues the tradition set forth by the DOLs 408(b)(2) fee disclosure regulation, which went into effect in 2012, in bringing transparency to fee structures and distinguishing brokers from fiduciaries. Despite setbacks, wirehouses were largely able to adapt to the measures set forth a few years ago, and one would have to be naïve to think they wont find a way to carry on under these new rules as well.
