DOL Proposes to Broaden Fiduciary Definition
The Department of Labor recently published a proposed regulation to update the definition of a “fiduciary” under ERISA. The regulation would expand the definition of fiduciary in the context of providing investment advice to a plan fiduciary, as well as to a plan participant or beneficiary. Investment advisory fiduciaries are currently identified through a “five‐part test.” It appears the DOL believes this test is insufficient to protect plans because “…no matter how egregious the abuse, plan consultants and advisers have no fiduciary liability under ERISA, unless they meet every part of the five‐part test.” The new regulations would require that some advisors who do not currently consider themselves to be fiduciaries to recognize that they are fiduciaries. Click here to read the brief from ASPPA.