September 20, 2011 – Investment advisor advocates are breathing easier after the Department of Labor announced Monday that it has pulled its current proposal on the definition of a fiduciary off the table.
The agency will take up the issue in early 2012 and repropose a fiduciary definition after more industry input.
For now, the move provides a reprieve for advisors who were worried that the current proposals would encumber firms with costly restrictions on how they deliver advice to savers and investors.
Before the DOL temporarily pulled its proposals, it was embroiled in debates with members of Congress and the industry over whether the proposals were calibrated properly. Investment advisors worried that workplace sponsored defined contribution plans would come under regulation by the Employee Retirement Income Security Act of 1974, or ERISA.
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