Early this month, the Committee on Education and Labor of the U.S. House of Representatives, Secretary of Labor Alexander Acosta discussed how the Department of Labor (DOL) and the Securities and Exchange Commission (SEC) plan to work together by the end of the year in rule making surrounding the Fiduciary rule. SEC Chairman Clayton has said this rulemaking package picks up where the DOL’s defeated approach left off.
The DOL posted their plan to issue their proposed rule making for the Fiduciary Rule and Prohibited Transaction Exemptions on their Agency Rule List.
Advisers and those in the 401k industry will continue to follow closely being that the proposed change to the Fiduciary Rule from April 18, 2016, which would have resulted in more advisers and brokers to be deemed fiduciaries to retirement plan participants including solo 401k and ROBS 401k participants under the Employee Retirement Income Security Act (ERISA) did not pass after The United States Court of Appeals for the Fifth Circuit ruled (by a two-to-one majority) to vacate it.
