TRICK-or-TREAT? DOL Proposes Spooky New ''Retirement Security Rule'' That Would Expand the Scope of Fiduciary ''Investment Advice''

Summary

Responding to the ''terrifying'' reality that conflicted investment advice is costing retirement savers billions of dollars each year, on October 31, 2023, the Department of Labor (DOL) issued proposed rules representing its latest attempt to expand what it means to be providing ''investment advice'' for a fee under the Employee Retirement Income Security Act of 1974, as amended (''ERISA'') and Section 4975 of the Internal Revenue Code of 1986, as amended (Code). For some, the proposal will constitute quite the ''treat'', while others will view it as a ''trick'' that, like prior DOL attempts to legislate in this area, might once again be subject to legal challenges.