In a conference call, DC legal experts Fred Reish and Drinker Biddle partner Brad Campbell outlined what to expect from the DOL’s expected July release of proposed rules on the definition of a fiduciary. The rules are expected to go beyond plan-level fiduciary status, addressing the solicitation of rollovers.
Campbell and Reish stated that while the fiduciary issues are manageable, the rubber will hit the road about prohibited transactions and the DOL’s view that many if not all rollover solicitations are really a fiduciary conversation. According to Campbell, the issues are “… less about the way you make a decision or the quality of the advice, but the business model behind you.”
Look for NAPA to be very active in the discussion and responses to the DOL proposals, especially as they affect advisors’ ability to pursue various business models to service this market, especially for small plans.
