The DOL proposed new rule language requiring that brokers and advisers working with retirement accounts act in the best interests of their clients, strengthening the investment advice and conflict of interest standards. The rule would establish a best-interest contract exemption that would legally require brokers and advisers to act in the best interest of their clients, and charge reasonable fees for advice dispensed. Advisers and brokers would have flexibility to charge for services in a variety of manners, including commissions, revenue sharing and 12b-1 fees.
There is a 75-day comment period to this proposed rule. The DOL will then host a public hearing within 30 days of the end of the comment period, in which additional comments can be recorded and considered.
planadviser.com; April 14, 2015.
investmentnews.com; April 14, 2015.