Regulators Face Daunting Court Precedent With 401(k) Advice Rule

The US Labor Department must walk a narrow legal tightrope to advance its latest attempt at 401(k) plan fiduciary rulemaking without running afoul of years worth of federal court precedent reining in its regulatory reach.

The DOL’s Employee Benefits Security Administration has now formally launched the third campaign in a decade-long saga aimed at redefining when retail investment advisers are subject to strict fiduciary standards of care.

The agency sent a proposed rule (RIN 1210-AC02) to the White House for review late last week, setting the stage for a showdown between the Biden administration and Wall Street investment ...