Department of Labor Proposing New IRA Fiduciary Rules

The U.S. Department of Labor (DOL) is proposing new IRA rules that will classify as a ‘fiduciary’ any person who gives “investment advice or recommendations to an IRA holder and meet certain tests.” This new rule will subject IRA advisers to stringent compliance rules.  Under the rule an IRA adviser will be deemed a ‘fiduciary’ unless they meet one of the DOL’s exemptions.  A breach of any of the fiduciary duties would subject the IRA adviser to litigation and excise tax liability.  The new rule is expected to be finalized within the next 18 months. 

See Seymour Goldberg, What Accountants Need to Know About Proposed Changes to IRA Fiduciary Rules, Bloomberg, June 5, 2015.