November 22, 2011

7 Areas of ‘Relief’ for Advisors in DOL’s Re-Proposed Fiduciary Rule

A LinkedIn blast by Los Angeles partner Fred Reish was reported in Advisor One.  Fred’s shared his seven “best guesses” on the areas in which the Department of Labor (DOL) will provide relief when it re-proposes its rule to amend the definition of fiduciary early next year.

 

Fred said the decision to re-propose the rule is a “victory for the private sector and particularly for insurance companies and broker-dealers who objected to a number of provisions in the initial proposal.”

 

He added, however, that “the victory may be limited” as DOL will likely provide relief “on certain issues, but not on others.”

 

Fred stated that “a broad revision of the regulation” is unlikely, but “there will be ‘adjustments’ to deal with specific issues.” While this may be of welcome relief to the financial services industry,” it will “probably not be helpful to those who are concerned about fiduciary status for ongoing services and recommendations to qualified retirement plans, such as 401(k) plans.”

 

Fred’s “best guesses” on the areas in which DOL will provide relief are: individual retirement accounts; commissions; insurance; appraisals; commercial transactions; exemptions and opinions; and “individualized” advice.

Services and Industries

The Faegre Drinker Biddle & Reath LLP website uses cookies to make your browsing experience as useful as possible. In order to have the full site experience, keep cookies enabled on your web browser. By browsing our site with cookies enabled, you are agreeing to their use. Review Faegre Drinker Biddle & Reath LLP's cookies information for more details.