The DOL’s Proposed Re-Definition of “Fiduciary” Sparks Lively Debate

Reprinted with permission from Employee Benefit Plan Review, May 2011. All rights reserved, WoltersKluwer Company, New York, N.Y.

The February 2011 Regulatory Update column outlined the recently proposed regulations on the definition of “fiduciary” under ERISA in the context of providing investment advice. Since the time that issue went to press, the Department of Labor (DOL) received nearly 200 comment letters and held two days of hearings on the proposed rule on March 1 and 2, 2011, with 39 witnesses testifying. This column will provide a brief overview of the comments and the testimony and a discussion of the next steps on the proposed rule.