The United States Department of Labor (DOL) has set forth a new guideline, known as “401,” for investment houses. 401 will make it mandatory that their agents take a fiduciary role with all of their clients’ retirement accounts.
The proposal, which is set to take effect in 2017, will require all investment advisers of individual retirement accounts (IRAs) and 401k’s to take on the the role of a fiduciary and disclose all of the investment fees including compensation to their investors. It will provide transparency.