For advisers, consultants, brokers, and insurance providers, no issue has been a bigger flashpoint over the past fifteen years than the standards of care for advice to individuals who have or may be considering opening an individual retirement account (“IRA”) or buying an annuity.  This hub provides an overview of DOL’s efforts to impose ERISA’s fiduciary rules on the IRA and annuity marketplaces. 

In this and prior efforts, we’ve worked with clients to help shape guidance, develop compliance strategies, and to push back in the courtroom when appropriate.  For more detail on DOL’s current efforts and how we can help, contact us or reach out to your regular Groom attorney.

Groom Insights

  • On April 10, 2024, the Office of Management and Budget (“OMB”) completed its review of a final package developed by the U.S. Department of Labor (“DOL”) named the “Retirement Security Rule: Definition of an Investment Advice Fiduciary” (the “Fiduciary Package”).  We expect the Fiduciary Package to be released publicly within the next three weeks.  It will be important to quickly evaluate and develop a compliance strategy.
  • DOL continues to face a judiciary that has been skeptical so far of its attempts to expand the scope of who is an “investment advice fiduciary” and remains embroiled in litigation in Texas from its most recent prior effort. The District Court in Texas requested briefing on how the new proposal impacts the current case. FACC and DOL completed briefing on January 5th.
  • Congress continues to be focused on the package. The House Committee on Financial Services held a hearing to discuss the package on January 10th and there have been a number of letters from members of Congress to DOL. The House Committee on Education and Workforce held a hearing on February 15th to explore the possible consequences of the proposal.

Ongoing Litigation

Groom’s View


Deeper Dive

2023 Retirement Security Proposal
– A Deeper Dive

Find our detailed materials describing the proposals here.

2023 Proposal
Redlines

Find our redline compilation of the Department of Labor’s
proposed changes against the operative text currently in effect
here.

 

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