Biden Rule Raises Bar for Big Banks’ Pass to Manage 401(k) Cash

A new Biden administration regulation toughening the rules big banks have to comply with to oversee US retirement funds will further restrain asset managers from having free rein over workplace 401(k)s, despite concessions made after Republican lawmakers’ and industry criticism.

Final qualified professional asset manager amendments (89 Fed. Reg. 23090) the US Labor Department released Tuesday make it more difficult for foreign governments to exert influence on an estimated $38 trillion retirement industry, quashing an alleged threat GOP lawmakers had initially raised. The rule that takes effect in June was also modified to eliminate a potentially costly proposal ...