Experiential Wealth

2024 Fiduciary Rule Summary

May 1, 2024 | Individuals, Institutions, Regulations

Definition of an Investment Advice Fiduciary

On April 25, 2024, the Department of Labor (Department) issued the final Retirement Security Rule and amendments to several existing Prohibitive Transaction Exemptions. This regulation is effective on September 23, 2024. The final rule better reflects the text and the purposes of ERISA and better protects the interests of retirement investors, consistent with the Department’s mission to ensure the security of the retirement, health, and other workplace-related benefits of America’s workers and their families. The final rule is designed to ensure that retirement investors’ reasonable expectations are honored when they receive advice from financial professionals who hold themselves out as trusted advice providers.  The final rule is intended to protect the interests of retirement investors by requiring persons who are defined in the final rule as investment advice fiduciaries to adhere to stringent conduct standards and mitigate their conflicts of interest.

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