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U.S. Department of Labor Issues Proposed Fiduciary Rules

Yesterday, the U.S. Department of Labor issued its highly anticipated re-proposed regulation addressing when a person providing investment advice with respect to an employee benefit plan is considered a fiduciary under ERISA.  The DOL stated that it believes its proposal is necessary because the current regulatory scheme no longer adequately protects plans, participants, beneficiaries, and IRA owners from conflicts of interest, imprudence and disloyalty.

The proposed rule offers a general definition of fiduciary investment advice, subject to specific carve-outs for particular types of communications that are not considered fiduciary in nature.  In addition, the DOL has simultaneously proposed a new set of prohibited transaction exemptions and certain amendments to existing exemptions in order to permit certain common fee and compensation practices to continue.

A comprehensive client alert is forthcoming.   The text of the proposed rule is available here.

© 2019 Proskauer Rose LLP.


About this Author

Russell L Hirschhorn ERISA Litigation, employee benefits attorney, Proskauer
Senior Counsel

Russell Hirschhorn is a Senior Counsel in the Labor & Employment Law Department, where he focuses on complex ERISA litigation and advises employers, fiduciaries and trustees on ERISA benefit and fiduciary issues. 

Russell represents employers, plan sponsors, plans, trustees, directed trustees and fiduciaries in all phases of litigation, arbitration and mediation involving employee benefits, including class action and individual claims relating to ERISA’s fiduciary duty and prohibited transaction provisions, denials of claims for benefits, severance plans, ERISA Section 510,...

Ahuva Warburg, Tax lawyer at Proskauer Rose Law firm

Ahuva Warburg is an associate in the Tax Department and a member of the Employee Benefits, Executive Compensation & ERISA Litigation Practice Center.

Ahuva represents multiemployer and single employer benefit plan clients, including public and private companies and non-profit institutions, with respect to a variety of tax and benefits issues, including plan administration, design, compliance and qualification issues. She advises welfare and retirement plan clients on matters affecting ongoing legal compliance with the Internal Revenue Code, ERISA, COBRA and HIPAA, as well as the numerous other federal and state laws affecting employee benefit programs. In addition to providing advice with respect to day-to-day employee benefits issues, Ahuva represents clients in the preparation of formal plan documents and participant communications.