The Department of Labor’s (DOL) latest proposal to redefine fiduciary rules is facing fierce opposition from the insurance industry, even before the text has been released.

The Department of Labor proposal, which is expected to be released in the next few weeks, would raise the standard of advice for retirement accounts. The insurance industry argues that the proposal would hurt middle- and low-income savers by making it more expensive for them to get financial advice.

The Insured Retirement Institute (IRI), a trade group representing the insurance industry, released a statement on Saturday criticizing the Department of Labor proposal. The IRI said that the proposal would “significantly harm lower and middle-income workers and exacerbate the wealth gap for Black and Latino families.”

The DOL has not yet released the text of its proposal, so it is difficult to say exactly what it would do. However, it is clear that the proposal is generating a lot of opposition from the insurance industry.

Implications for Investors

It is important for investors to be aware of the Department of Labor’s latest proposal on fiduciary rules. The proposal could have a significant impact on the way that financial advisors provide advice to their clients.

Investors should ask their financial advisors about the proposal and how it could affect them. Investors should also make sure that their financial advisors are meeting their fiduciary obligations.

What is the DOL fiduciary rule?

The DOL fiduciary rule is a regulation that requires financial advisors to act in the best interests of their clients. The rule applies to advisors who provide advice about retirement accounts, such as individual retirement accounts (IRAs) and 401(k) plans.

The DOL fiduciary rule was first proposed in 2016, but it was blocked by the courts. The Trump administration issued a new fiduciary rule in 2017, but it was also blocked by the courts.

The Biden administration has proposed a new Department of Labor fiduciary rule, which is expected to be released in the next few weeks. The new rule is expected to be similar to the Obama administration rule, which was blocked by the courts.

Why is the insurance industry opposed to the DOL fiduciary rule?

The insurance industry is opposed to the DOL fiduciary rule because it believes that the rule would make it more expensive for them to provide financial advice. The insurance industry also argues that the rule would hurt middle- and low-income savers.

What should investors do?

Investors should ask their financial advisors about the Department of Labor’s latest proposal on fiduciary rules and how it could affect them. Investors should also make sure that their financial advisors are meeting their fiduciary obligations.