On April 8, 2016, the Department of Labor published a new regulation (the “Fiduciary Rule”) that greatly expands the activities that make one a fiduciary under Employee Retirement Income Security Act of 1974, as amended (“ERISA”), by providing “investment advice.” (For more information, please see our client alert on the Fiduciary Rule here.) Although targeted primarily at providers of retirement plan products and services, the Fiduciary Rule will have an impact on plan sponsors. Thus, it is important for employers, investment committees, and other plan fiduciaries to understand how the Fiduciary Rule impacts their fiduciary responsibilities and the relationships they have with plan service providers.
This client alert identifies some of the key issues for plan sponsors that arise from the Fiduciary Rule.
