Fiduciary Rule Regulatory Gaps Get Labor Agency’s Attention (1)

The US Labor Department is focusing on filling in the gaps state and federal regulations have left behind as it moves forward with rulemaking that will redefine who qualifies as a retirement plan investment advice fiduciary.

Regulation Best Interest, which the Securities and Exchange Commission promulgated in 2019, and best-interest model language dozens of states have adopted doesn’t protect all private-sector retirement plans and participants from receiving conflicted advice, said Ali Khawar, deputy assistant secretary for DOL’s Employee Benefits Security Administration.

The department’s fiduciary rule is expected to set tougher standards for investment advisers who charge a fee for providing ...