Thursday, December 17, 2020

New DOL Rule on Investment Advice

Near the end of the term, the Trump Department of Labor recently announced its rule for investment advice accompanied by a WSJ op-ed from Jay Clayton and Eugene Scalia.  While there is much to digest, the rule largely aligns Labor with SEC Regulation Best Interest.  Much like the SEC's approach under Chair Clayton, the DOL proposal takes the "eliminate or disclose" approach to conflicts as well. 

Ultimately, the new regulation isn't likely to significantly improve outcomes for retail investors.  It leaves financial advisers free to continue operating with significant conflicts even when providing advice about retirement assets.

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