This is the first in a series of client advisories regarding the Department of Labor’s re-proposed regulation on the definition of “fiduciary” under ERISA Section 3(21) and related proposed new and amended prohibited transaction class exemptions (the Proposed Rule). If finalized, the Proposed Rule would expand the definition of who is considered a “fiduciary” to an ERISA-covered plan or IRA as a result of giving investment advice for a fee to the plan or its participants or beneficiaries. This client advisory summarizes the Proposed Rule’s new definition of fiduciary by reason of providing investment advice to an ERISA-covered plan or an IRA.

(For further details regarding the proposed new “best interest contract” class exemption, please see our Client Advisory on “DOL’s Proposed Prohibited Transaction Exemption: Best Interest Contracts” published concurrently with this one. Proposed amendments to existing class exemptions and discussions highlighting the specific impacts of the Proposed Rule on various parties will be addressed in future client advisories.)