ERISA Attorneys Examine Labor Department’s Final Fiduciary Rule

In The News
May 23, 2024

In a Columbia Law School Blue Sky Blog article, ERISA attorneys analyzed the U.S. Department of Labor’s recently finalized fiduciary rule and the implications it will have for private fund managers.

The Final Rule focuses on whether advice is being provided to retirement accounts in the context of a trusted advice relationship. The Final Rule is narrower in scope from the rule the DOL adopted in 2016, which should make the Final Rule less disruptive for managers of private funds such as private equity, credit, real estate and hedge funds. Nonetheless, the authors note that the changes made by the Final Rule will still have important consequences for investment managers.

Among other matters, participants in the financial services industry, including asset managers of open-and closed-end funds, broker-dealers and financial advisors must consider whether the Final Rule could cause current marketing practices and communications to be considered potential fiduciary advice.

The article was authored by ERISA and benefits partner Joshua Lichtenstein, who heads the firm’s ERISA fiduciary practice, ERISA and benefits partner Sharon Remmer and ERISA and benefits associates Jonathan Reinstein and Alexa Voskerichian.