Burr & Forman

05.13.2016   |   Articles / Publications

Birmingham Medical News: New Fiduciary Rule for Retirement Plans

On April 6, 2016 the Department of Labor’s Employee Benefits Security Administration (“EBSA”) issued its long awaited final rule redefining a fiduciary investment advisor (also known as the “conflict of interest rule”), greatly expanding who will be considered a fiduciary when providing “investment advice” to retirement plans.

This is important to the health care community because most providers sponsor retirement plans for employees − and if there is no fiduciary advisor, the provider is likely responsible. Along with the new rule, EBSA issued new exemptions and revised existing exemptions. The new rule and most exemptions will be applicable on April 10, 2017. Together, the new rule and exemptions directly impact the financial services industry and are expected to result in significant changes in the way many financial institutions provide investment services to ERISA plans and IRAs. The goal is for retirement plan sponsors and IRA owners to receive better (i.e., nonconflicted) advice due to the elimination or disclosure of conflicts of interest, although some in the financial services industry predict costs will escalate as advisors exit the market. This article provides an overview of the new rule.

Read the full article, “New Fiduciary Rule for Retirement Plans.”

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