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Blog Post
DOL Expands Definition of Investment Advice Fiduciary
Michael Christians • May 01, 2024
The United States Department of Labor (DOL) has issued a final rule that expands the definition of an investment advice fiduciary under the Employee Retirement Income Security Act of 1974 (ERISA).
Under the final rule, an investment advice fiduciary is a person who, for a fee or other compensation, provides professional investment recommendations to investors on a regular basis as part of their business and the recommendations are made under circumstances that would indicate to a reasonable investor in like circumstances that the recommendation:
- Is based on review of the retirement investor's particular needs or individual circumstances,
- Reflects the application of professional or expert judgment to the retirement investor's particular needs or individual circumstances, and
- May be relied upon by the retirement investor as intended to advance the retirement investor's best interest.
Investment advice fiduciaries are required to adhere to stringent conduct standards and mitigate their conflicts of interest. Financial institutions should review the final rule, available here, to determine what activities (if any) would cause one or more of their employees to meet the revised definition of an investment advice fiduciary.
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5438 South Prairie View Drive
West Des Moines, IA 50266
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319-325-1171
michael@mchristiansconsulting.com
Michael Christians Consulting, LLC
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