One of the more controversial regulations proposed by the DOL under President Obama was their plan to broaden the definition of fiduciary to include more financial advisors. According to a BNA report, a proposed rule has been submitted to the Office of Management and Budget for clearance and should be issued in early 2013. At a recent International Foundation of Employee Benefit Plans conference, Borzi indicated that it was time to include financial advisors in the definition of a fiduciary.
The new proposal includes “a very robust economic analysis,” spelling out the case that any increased costs associated with it would be far outweighed by benefits to plan participants, as well as a series of amendments dealing with conflicts of interest, Borzi indicated. For more background on the issue, click here.
UPDATE: As of mid-afternoon Eastern Time Nov. 14, the proposed rule was not listed on OMB's website as having been received from DOL. When it is listed, we will report it via a new post on NAPA Net.
