The U.S. Department of Labor is pushing for tougher rules for advisors dealing with workplace retirement plans, Reuters reports.
Phyllis Borzi, the assistant secretary of the Employee Benefits Security Administration, says conflicts of interest in the provision of advice are the key target.
“The department has been working now for several years to overhaul its rules governing how advisers provide advice to clients in workplace retirement plans such as 401(k)s and individual retirement accounts.
“Borzi wants these advisers to be held to a higher ‘fiduciary’ standard, meaning they must put their clients’ interests ahead of their own. The idea behind the plan is to reduce potential conflicts of interest because advisers who offer rollover advice to retirees stand to benefit financially,” says the report.
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