Fiduciary Rule Rewrite From Benefits Agency Clears White House

The rewrite of an Obama-era fiduciary rule has cleared White House Office of Management and Budget review.

The Improving Investment Advice for Workers and Retirees rule [RIN: 1210-ZA29] is expected to ease restrictions on financial advisers by reinstating the 1975 regulation from the Employee Retirement Income Security Act that defines fiduciaries.

The rule as proposed from the Employee Benefits Security Administration also contains a new prohibited transaction exemption to ERISA’s conflict-of-interest guidance. The exemption would allow investment advisers to receive compensation even if they provide “conflicted” investment advice—advice from those whose earnings depend on the actions taken by ...