U.S. Labor Dept. Issues Retirement Security Rule Over Wall Street Objections

Apr 23, 2024, 06:41 PM

The U.S. Department of Labor has issued the Retirement Security Rule, aimed at enhancing the fiduciary standards for retirement plan advisers. This regulation, finalized over objections from Wall Street, broadens the scope of who qualifies as a fiduciary under the Employee Retirement Income Security Act (ERISA), backing off some changes included in a previous proposal. The rule mandates that retirement advisers adhere to stricter guidelines, ensuring they act in the best interests of their clients. This move is part of the Biden administration's effort to protect workers and retirees by preventing losses from poor financial advice, which reportedly costs billions annually.