Fact Sheet: Defining Fiduciary
The Labor Department’s Employee Benefits Security Administration (EBSA) has posted a fact sheet on the definition of “fiduciary” under the Employee Retirement Security Act (ERISA).
The agency defines a plan fiduciary “to include anyone who gives investment advice for a fee or other compensation with respect to any moneys or other property of a plan, or has any authority or responsibility to do so.”
The new fact sheet includes background on the term, developments since ERISA was enacted in 1974 that have caused EBSA to reevaluate its definition of fiduciary, and an overview of its proposed regulation to broaden the definition. The agency is currently working on a final rule that would result in a greater range of individuals who provide investment advice being deemed fiduciaries.
EBSA has also released transcripts from public hearings the agency held to address when a person is deemed a fiduciary. To access the transcripts: www.dol.gov/ebsa/
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