Publication

"DOL’s Fiduciary Re-Proposal: Caveat Venditor or 'Death of a Salesman'?"

On April 14, 2015, the Department of Labor (“DOL”) released its long awaited re-proposal (the “Re-Proposal”) to expand the definition of fiduciary as it applies to the many providers of services to employee benefit plans subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and individual retirement accounts subject to the Internal Revenue Code of 1986, as amended.   In the words of one senior DOL official, “obviously, any regulatory project that aims at the fiduciary definition is going to, kind of, right to the core” of ERISA. 

This Stroock Special Bulletin provides a detailed discussion of the Re-Proposal’s framework and the many issues it will pose for market participants if it is adopted in its present form.  In addition to the narrative discussion, this Stroock Special Bulletin also includes the following charts:
 

  • Chart I: Comparison of Rules,
  • Chart II Changes to “Investment Education,”
  • Chart III the “Best Interest Contract” Exemption,
  • Chart IV the “Principal Transaction Exemption,” and
  • Chart V, Chart VI, Chart VII and Chart VIII, which deal with revisions to existing prohibited transaction exemptions.

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