DOL Rule’s Rollover Exemption a Surprise. But Is it Enforceable?
July 9, 2020 by Patrick Donachie
After the 5th U.S. Circuit Court of Appeals vacated the Obama-era fiduciary rule in 2018, few expected the Trump administration’s revised rule, meant to better align with the SEC’s Regulation Best Interest, to include any expansion of fiduciary standards.
The proposed rule by the Department of Labor was released earlier this week, and some, including Fred Reish, a partner with Drinker Biddle’s Employee Benefits and Executive Compensation Group and chair of the Financial Services ERISA Team, were surprised to find that it may extend ERISA’s fiduciary standard to some rollover recommendations that would not have been subject to that scrutiny in the past.