Will 401(k) Rollovers Equal Advisors’ Fiduciary Responsibility?

CFP® Certificants in the News

The CFP Board’s recent news release opined that “The Department of Labor’s new retirement security rule standard expanding fiduciary duties will likely face legal opposition. Advocates for the rule, including CFP Board, plan to submit amicus briefs in support of the DOL in any lawsuits.”

The news release cites an April 29, 2024  Bloomberg article that reports considerable opposition to the Retirement Security Rule, including the expansion of fiduciary duty to include financial advisors making rollover recommendations to 401(k) plan participants and 401(k) plans themselves. For example, here’s one excerpt from Bloomberg, “Legal threats and legislative actions could jeopardize the investment advice rule’s chances of reaching its initial effective date of Sept. 23. Life insurers that sell annuities have vocally opposed the rule, which they say would decimate the market for those products typically marketed as rollover options for retirement savers. Professional groups like Finseca, which counts giants like State Farm and Principal Financial Group among its members, are gearing up to pursue potential litigation against the DOL.”

Unless you have a dependable crystal ball, it’s anyone guess as to whether this fifth DOL attempt to expand the fiduciary duty will succeed or fail.

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