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Dept. of Labor to Unveil New Fiduciary Rule

The Department of Labor announced in its spring 2023 regulatory agenda that its revised fiduciary rule, now referenced as “Conflict of Interest in Investment Advice” will be unveiled for public comment in August.

According to the DOL, the rule focuses on amending the definition of fiduciary “to more appropriately define when persons who render investment advice for a fee to employee benefit plans and IRAs are fiduciaries within the meaning of section 3(21) of ERISA and section 4975(e)(3) of the Internal Revenue Code.”

Supposedly, it would also review available prohibited transaction class exemptions and propose amendments or new exemptions. This would, allegedly, ensure consistent protection of employee benefit plan and IRA investors.

The Labor Department’s notice says that the amendment “would take into account practices of investment advisors, and the expectations of plan officials and participants, and IRA owners who receive investment advice, as well as developments in the investment marketplace, including in the ways advisors are compensated that can subject advisors to harmful conflicts of interest.”

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