With what Labor Secretary Thomas Perez called a "keen ear and healthy dose of humility," the Department of Labor has finalized a fiduciary rule after making what he called substantial changes to the proposed version.
Never a fan of the suitability standard that has guided the brokerage advisory industry to date, Perez implied the final rule makes good on his commitment to slow down the rulemaking process and fully consider stakeholders' concerns, a pledge he made to lawmakers during his confirmation hearings.
For Perez and the DOL, the challenge of writing a rule that would insist on a fiduciary level of care for advisors to most 401(k) plans and all IRA accounts was never about "bad people doing bad things," but rather the heart of the challenge was that advisors have been operating in a "structurally flawed system."
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
