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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)




Journal of Taxation and Regulation of Financial Institutions

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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.

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