Conflicting Interests – DoL 401(k) Participant Advice Rule May Not See Light of Day 1/29/09

“The controversy exists in that the person delivering the advice must adhere to specific fiduciary criteria, but their affiliated firm, whether that’s a broker-dealer, mutual fund company, insurance company, or bank, does not,” said Griffeth. The new rule “opens the door for conflicts of interest to exist on the part of brokerage firms and mutual fund firms at the sake of participants, whom I fear wouldn’t know what questions they should ask to ferret out conflicted advice.”

“…In essence, he said the broker- dealers, insurance companies, banks, and mutual fund companies could play “puppeteer” with the advisers that are meeting with participants to benefit their own pocketbooks, not the participants.” – Chad Griffeth, BeManaged | Actium

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