Los Angeles partner Fred Reish shared his thoughts with Advisor One on the Department of Labor’s (DOL) controversial fiduciary requirements involving brokerage windows under its fee-disclosure rule 404a-5.

Fred explained that much of the retirement plan community was up in arms over a position taken by the US Department of Labor (DOL) in a Field Assistance Bulletin (FAB) concerning participant disclosures and fiduciary obligations concerning individual brokerage accounts in 401(k) plans. Q and A 30 in the FAB would have imposed substantial fiduciary obligations on plan committees to investigate the investments being made by participants in individual brokerage accounts. Fortunately, the DOL reversed that position in a revised Q and A in its amended FAB.

This change of heart by the DOL is "very good news" that "will be well received by the retirement and investment communities."