Retirement Plan Servicers Stand to Lose Business Under Proposal

A proposed US Labor Department rule toughening the requirements major global financial firms use to manage US retirement assets could cause more than a dozen firms to lose their retirement business each year, according to a supplementary analysis released Wednesday.

DOL’s Employee Benefits Security Administration had initially determined that the proposed rule adding new forms of prohibited misconduct and felony convictions to the qualified professional asset manager exemption wouldn’t have an impact on small businesses.

After consulting with the Small Business Administration, however, the agency determined the rule could have a “minimal” impact. Some small businesses that qualified as QPAMs ...