The rule outlines when investment advice providers are acting in a fiduciary role and therefore must follow strict rules of conduct. Generally, fiduciary advice providers must:
give advice that is prudent and loyal.
avoid misleading statements about conflicts of interest, fees, and investments.
follow policies and procedures designed to ensure the advice given is in an investor's best interest.
charge no more than is reasonable for their services.
carefully manage their conflicts of interest and give investors basic information about them.
Why did EBSA issue this rule?
EBSA's mission is to protect the job-based retirement, health and other welfare plan benefits of America's workers and their families. Requiring trusted investment advice providers to comply with fiduciary standards protects investors from harmful conflicts of interest that could reduce their retirement savings.
For more information, visit: https://www.dol.gov/agencies/ebsa/laws-and-regulations/laws/erisa/retirement-security
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