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George Gerstein Quoted in Regulatory Compliance Watch on New DOL Fiduciary Rule Proposal
Senior Counsel George Gerstein was quoted in a Regulatory Compliance Watch article titled, “A Deeper Dive: More on the DOL’s Fiduciary Proposal,” which discussed the DOL’s new proposal to revise the test for determining when one becomes an investment advice fiduciary under ERISA. George observed that compared to a 2016 version of the rule, this recent proposal fails to include an independent fiduciary exception, which would have excluded firms when dealing with sophisticated investors. He went on to further note that, under the current proposal, fund advisers could “inadvertently” become investment advice fiduciaries potentially through marketing pieces that contain “an embedded recommendation on how they should invest plan assets, that could be seen to meet the definition of a recommendation under the rule.”
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