The U.S. Department of Labor issued final regulations on April 23, expanding the definition of “fiduciary” under ERISA. The final regulations alter the definition of “investment advice fiduciary” for purposes of Title I and Title II of ERISA to impose fiduciary duties on individuals or entities that make compensated recommendations related to the use of retirement assets to participants, beneficiaries and owners of qualified retirement plans and IRAs.

One hotly debated change brought about by the new regulations includes subjecting to ERISA fiduciary standards most recommendations related to rolling over assets from a workplace retirement plan to another plan or IRA. Those subject to the new final regulations will have until the middle of September 2024 to comply with portions of the new rules, with the full suite of changes taking effect after a one-year transition period.

If you have any questions about how this new definition will impact your business, please contact the authors.