Bloomberg Law
Dec. 15, 2020, 9:40 PMUpdated: Dec. 15, 2020, 11:11 PM

Labor Agency’s New Rule Follows SEC ‘Best Interest’ Standard (1)

Austin R. Ramsey
Austin R. Ramsey
Reporter

The Labor Department has released its contentious fiduciary exemption that broadens the kinds of retirement plan investments from which financial advisers can profit.

The fiduciary rule DOL officials announced Tuesday opens federally protected retirement plan participants and beneficiaries to once-prohibited financial advice and follows a newly imposed best interest rule the Securities and Exchange Commission approved in June.

The regulation, which cleared a three-week White House Office of Management and Budget review late Monday, was part of a package that formally reinstated DOL’s five-part test defining financial advice under the Employee Retirement Income Security Act of 1974 in July. An ...

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