DOL Aims To Expand Scope Of ERISA Fiduciaries

Law360, New York (October 21, 2010, 3:44 PM EDT) -- The U.S. Department of Labor proposed a new regulation Thursday that would broaden the definition of “fiduciary” under the Employee Retirement Income Security Act, officials said, allowing the agency to prosecute investment advisers who have escaped liability in the past.

The proposal would expand the definition of fiduciary to cover any person who provides investment advice to plans for a fee or other compensation, reflecting changes in the investment marketplace since ERISA went into effect in 1974, officials said.

The new rule would amend a 1975...
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