Labor Department Rule Expands Responsibility for 401(k) Plans
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The U.S. Department of Labor wants to expand accountability for employer-sponsored retirement plans to investment advisers.
The proposed ruled announced today would broaden the definition of “fiduciary” to further protect 401(k) participants from conflicts of interest, such as investment advisers recommending an option that brings in higher fees or promotes their own firm’s funds, according to the department. A fiduciary under Labor Department rules must act in the best interest of the worker in the retirement plan.