Last week President Trump halted implementation and enforcement of the new DOL Fiduciary Rule scheduled to take effect in April. What does this mean for your company and employees?
Here's a quick summary of what this latest Executive Order means:
- On Friday, February 3rd, President Trump signed an EO halting the enforcement of the fiduciary rule.
- Previously set to take effect April 10th, it would require all advisors serving retirement plans to act as fiduciaries and be held accountable to that standard.
- Essentially, all advisors working with retirement plans would have to act in the best interest of their clients and ensure they follow specific disclosure and documentation processes, even it means recommending products that will not profit them as much as others.
- This new development presses the "pause" button on preparing for these updates and could, potentially, end with some of the legal requirements the rule put forth being done away with all together.
What Does This Change Mean for You and Your Employees?
The delay of the fiduciary rule can create a bigger challenge for many organizations as they will need to navigate and determine if their services providers are or are not acting as fiduciares.
Here's what fiduciary advisors provide:
- Acting in the best interest of employees and beneficiaries
- Ensuring you are offering a suitable and competitive investment menu at all times
- Ensuring plan costs are fair, reasonable, and competitive with services being offered
- Ensuring employees have access to tools and guidance to make informed decisions
Our firm acts as a fiduciary for all of the organizations we work with, but there are still advisors in the marketplace who are working with retirement plans who are not designated fiduciaries or who are only providing non-fiduciary guidance to employees.
We encourage you to contact your service providers and confirm they are fulfilling their responsibilities to you and your employees, despite this delay.
For more information on this latest policy change, read my latest article for Employee Benefit Adviser here:
If you would like to learn more about AFS 401(k) and our services, please visit us here.