DOL FIDUCIARY REGS: Rule targeting retirement plan advisers still coming

Phyllis Borzi, the assistant Labor secretary who heads the Employee Benefits Security Administration, continues to stick to her…

Phyllis Borzi, the assistant Labor secretary who heads the Employee Benefits Security Administration, continues to stick to her plan to issue a rule by the end of 2011 that would increase the scope of fiduciary responsibility for those advising retirement plans. The rule would require investment professionals who advise employers and workers with retirement savings plans such as 401(k)s to act in the best interests of their clients. The change could cause financial firms to offer fewer investment options in retirement accounts and shift to a fee-based model, which may increase costs, according to the Securities Industry and Financial Markets Association. For related story click here.