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CFP Board Submits Comment Letter to DOL on Proposed Retirement Security Rule

January 03, 2024

On January 2, 2024, CFP Board submitted a comment letter to the U.S. Department of Labor (DOL) concerning its “Proposed Retirement Security Rule: Definition of Investment Advice Fiduciary” and related prohibited transaction amendments, which DOL issued on November 3, 2023. In its letter, CFP Board commends DOL for taking steps to modernize the Employee Retirement Income Security Act of 1974 (ERISA) regulatory framework to account for changes in the retirement investment landscape and the reasonable expectations of retirement investors.

The investment landscape has changed dramatically since Congress enacted ERISA. Due to the advent of 401(k) plans, the popularity of IRAs (i.e., individual retirement accounts and individual retirement annuities) and the shift away from defined benefit pension plans, most workers today are personally responsible for managing their own retirement savings. With so much at stake, investors now overwhelmingly expect that financial professionals will provide them with financial advice in their best interests. CFP Board notes that the regulatory standard DOL proposed would meet a retirement investor’s reasonable expectation of a relationship of trust and confidence. CFP Board urges the DOL to move forward expeditiously with a final rule designed to protect retirement investors. CFP Board also offers some suggestions for improving the proposed rule.

Read CFP Board's Comment