Treichel + others explain what retirement advisors need to know about the upcoming Retirement Security Rule

April 29, 2024
With the DOL final fiduciary rule released, it’s important for industry leaders to quickly understand what the new legislation entails. During a recent webinar hosted by Bonnie Treichel, Chief Solutions Officer at Endeavor Retirement, panelists discussed the evolution of retirement planning regulations, noting the significant impact of individual retirement accounts (IRAs) since the enactment of ERISA in 1974. IRA assets now dominate the defined contribution landscape and are expected to grow further. The DOL rule aims to enhance investor protections by redefining who qualifies as an investment advice fiduciary. It replaces outdated criteria with new definitions focused on professional investment recommendations that consider investors’ individual needs and best interests. Treichel explains, “The 1975 rule is outdated, it’s under-inclusive, it’s not bringing enough people under that umbrella to offer protection.” The rule also clarifies distinctions between education and advice and introduces standards for fiduciary conduct under PTE 20-02 and PTE 84-24, aiming to improve transparency and accountability in retirement planning advice. “When you’re having that one-on-one meeting time with participants, oftentimes they are looking for that call to action,” Treichel also states. “They’re not just looking for that blank pie chart, they’re looking for you to tell them how to start moving the pieces of that pie chart around.” To learn more, click here to read Breaking Down the Basics: DOL Fiduciary Rule.

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