According to InvestmentNews, the Department of Labor (DOL) began enforcing an investment advice regulation for retirement accounts on Feb. 1, 2022. Benefits and executive compensation partner Fred Reish commented on how the DOL’s fiduciary rule may impact smaller firms.
The publication explained that the regulation would trigger a fiduciary standard of care for most recommendations to roll retirement funds over from 401(k) plans to individual retirement accounts. Reish said some smaller firms are not fully aware of the new requirements and could have inadvertently missed the Feb. 1 deadline.
InvestmentNews also highlighted the risk that smaller firms’ policies and procedures might not withstand regulatory scrutiny. “For example, some firms may not appreciate the process required and the information that must be gathered to make a compliant rollover recommendation,” Reish added.