Department of Labor Releases Final Definition of ERISA Fiduciary and Related Conflict of Interest Rules: Groups Move to Challenge in Court
On April 6, 2016, the Department of Labor (“DOL”) published a new final fiduciary rule under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and Section 4975 of the Internal Revenue Code of 1986, as amended (“Code”), together with two new and six amended ERISA prohibited transaction class exemptions, which address conflicts of interest that may occur in connection with retirement investment advice. The regulatory package is intended to address perceived conflicts of interest between retail retirement investors and the broker-dealers and financial advisers who provide services to retail retirement investors.