What Is a “Recommendation” Under the Department of Labor’s Fiduciary Rule? Lessons From FINRA
Author: Lee A. Schneider.; Lilya Tessler.; Alexandra N. Mogul.; Seth Rosnebloom.
Source: Volume 31, Number 01, Fall 2017 , pp.15-22(8)
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Abstract:
The Department of Labor fiduciary rule has been the subject of much debate and scrutiny by regulators and industry participants. The key factor triggering its requirements is the presence of a “recommendation.” This article explores the securities laws’ concept of recommendation in an attempt to shed light on its definition for purposes of the fiduciary duty rule.Keywords: ERISA, fiduciary duty, investment advice, implicit recommendation
Affiliations:
1: Debevoise & Plimpton LLP; 2: Debevoise & Plimpton LLP; 3: Debevoise & Plimpton LLP; 4: Betterment.