Law360, Bloomberg BNA and ACA Insight Quote Investment Management Counsel on the Department of Labor’s Final Fiduciary Rule
After much controversy and debate, on April 6, the Department of Labor released the final version of its highly anticipated fiduciary rule. As arguably the most significant regulatory action within the retirement industry in the last 40 years, the unveiling of the rule was met with much scrutiny by the industry and media alike. Although potential lawsuits could be on the horizon, cautioned investment management counsel David Tittsworth (Washington, D.C.) in Law360, “by reducing the [best-interest-contract exemption]’s complexity and streamlining disclosures, the DOL also helped investment advisers with implementing the new requirements,” Mr. Tittsworth subsequently stated in Bloomberg BNA. “Because the rule is less complex, advisers won't need as much time as under the proposed eight-month period,” continued Mr. Tittsworth. As the industry now awaits action from the SEC on releasing their own fiduciary rule, “the fiduciary duty under the Investment Advisers Act [differs] from the fiduciary duty under ERISA,” Mr. Tittsworth outlined in ACA Insight. However, “having different requirements for the SEC and the Department of Labor is really not all that new,” though the new rule does “extend the Labor Department’s reach a bit more,” Mr. Tittsworth noted.