Rollovers from 401 plans to IRAs will be most affected by a recent U.S. Department of Labor proposal to raise protections for retirement advice, legal experts said.The Labor Department is concerned financial conflicts cause brokers to give investment advice that's not in customers' best interests. Critics say the current regime provides adequate protection.
"ERISA fiduciary duties are the highest fiduciary duties under U.S. law," said Josh Lichtenstein, partner at law firm Ropes & Gray. The Department's proposed rule would expand ERISA's fiduciary protections to cover most rollover solicitations, experts said."They're trying to fill what they see as gaps" in the rules, he added.Many rollover transactions are already overseen by other regulatory bodies like the Securities and Exchange Commission and National Association of Insurance Commissioners, experts said.