Conflict of Interest – Investment Advice

Conflict of Interest – Investment Advice

Standards Committee


The U.S. Department of Labor introduced a major change to the Employee Retirement Income Security Act (“ERISA”) in 2016 with the announcement of a regulation named: Definition of the Term ‘‘Fiduciary’’; Conflict of Interest Rule—Retirement Investment Advice (the “Rule”).

The Rule imposes a fiduciary standard of care covering all investment advice provided to participants in ERISA qualified plans and investors in Individual Retirement Accounts (“IRA”). Compliance with the Rule’s provisions is forcing many providers of investment advice services to reconsider their business processes.

IFLC commissioned a committee to develop a business process management standard specifically designed to assist investment firms adjust their operations to confirm to the Rule’s compliance requirements. Prior to the formation of the committee, IFLC formed a Working Group under the auspices of the Fiduciary Supply Management Association for the purpose of obtaining perspectives and comments from the types of organizations that are most heavily affected by the Rule.

Participants on the committee represent firms drawn from each sector of the investment advice industry.

Join IFLC and become part of the IFLC committee that will maintain the business process for investment advice standard.