The Department of Labor (DOL) fiduciary rule, delayed from the original April 10, 2017 deadline, expands the ERISA (Employee Retirement Income Security Act) definition of “investment advice fiduciary” so that every financial professional working with retirement plans would be held accountable as a fiduciary of the plan. The essence of the rule is that anyone giving financial advice should put their client’s interests first, and should be held liable if they fail to do so. The implementation of this rule would eliminate the conflict-of-interest that has become more common in the financial and retirement plan industry.
The retirement plan classification of services includes employers, third-party administrators, recordkeepers, 3(38) fiduciaries, 3(16) fiduciaries, investment professionals and custodians. The fiduciary rule seems to call into questions whether the bundled model (one-stop-shop) for a 401k plan can truly act in the client’s best interests without raising any suspicion of conflict-of-interest.
“RPG Consultants is proud to be a CEFEX-certified recordkeeper and third party administrator with an investment agnostic model,” says Evan Rapp, Managing Partner at RPG Consultants. “Our clients depend on us for their plan design, consulting, administration and recordkeeping, but we do not offer any form of investment advice, since we firmly believe that the combination of these important roles can jeopardize the integrity of the distinct retirement plan roles.”
While mutual fund, insurance and payroll providers scramble to adopt new compliance strategies, RPG Consultants continues to serve the industry in full-compliance with the law, in our clients’ best interest and with a distinguished integrity. We have always, and continue to, not only adhere to the letter of the law but the spirit of the law.