On October 31, 2023, the Department of Labor (DOL) issued a new proposed regulation that would change the definition of "fiduciary" under the Employee Retirement Income Security Act (ERISA). Specifically, it would amend the standards around which service providers are a fiduciary due to providing investment advice for a fee. In general, the proposed regulation would make it easier for service providers to fall within the definition of fiduciary under ERISA. The DOL is referring to the proposal as the "Retirement Security Rule."
Through the process of preparing the Retirement Security Rule, the DOL claims that it has consulted with other regulatory bodies, including the Securities and Exchange Commission (SEC), the Internal Revenue Service (IRS) and the Financial Industry Regulatory Authority (FINRA). The DOL also has been discussing the proper approach with multiple stakeholders in the retirement industry, including financial advisors.