Further, DOL officials outlined that the changes to the definition of an ERISA investment advice fiduciary will be implemented gradually, with an initial compliance deadline set for September. This includes adhering to impartial conduct standards and acknowledging fiduciary status.
Revisiting and Revising the Regulatory Framework
Significant changes were also made to the process used to ascertain when advice qualifies as fiduciary under ERISA, reverting to a five-part test from 1975 after previous modernization attempts were struck down by the Fifth Circuit in 2018. Lisa M. Gomez, Assistant Secretary for Employee Benefits Security, noted that these updates address the evolving needs of American workers, helping to secure their retirement.
DOL’s Final Fiduciary Regs Expand ERISA’s Reach : Specific Changes and Industry Reactions
The expanded fiduciary definition now includes advice on one-time rollover transactions and non-securities products, such as index annuities, and extends to interactions involving a plan’s 401(k) menu. Additionally, certain HR-related educational activities were clarified as outside the broader definition, aiming to reduce ambiguity in compliance requirements.
