Labor Department mulls investment advice proposal

The Department of Labor is considering two proposed rules intended to make investment advice more accessible to participants of 401(k) plans and IRAs. The rules would clarify how advice can be provided, as outlined in the Pension Protection Act of 2006, including the use of a certified computer model or through an adviser adhering to certain fee disclosures. The proposals specifically provide guidance on computer model certification, and include a model form that advisers could use to satisfy the fee disclosure requirement. The agency also has proposed an exemption that would permit advisers to provide individualized advice to a worker after giving advice generated via a computer model. Comments were due last month. For a look at the proposals, visit regulations.gov/fdmspublic/component/main?main=DocumentDetail&o=09000064806d3022.

Related Topics: Regulatory Moves