FIA urges Labor Department to revise fiduciary definition in ERISA proposal

21 July 2015

The U.S. Department of Labor’s proposed re-definition of the term “fiduciary” in the Employee Retirement Income Security Act of 1974 (ERISA) is so broad that it could be interpreted to capture services provided by futures commission merchants and prevent them from executing trades for pension plans, FIA said in a July 21 letter.  FIA urged the Department of Labor to revise the proposed definition in several ways so that incidental advice and recommendations related to the provision of execution and clearing services are not deemed to be fiduciary advice. “Futures are valuable products in the institutional market, and we urge the department to clarify its carve-outs so that FCMs are clearly excluded from fiduciary status,” FIA said.

  • FIA
  • Clearing
  • Customer Protection \ Segregation
  • Trading