New 401(k) Transparency Rules Proposed March 01, 2010 (Dow Jones) The U.S. government Friday proposed regulations designed to enhance transparency for millions of workers covered by 401(k)s, pensions and other retirement plans, offering long-awaited guidance for investment firms.
Since the Pension Protection Act of 2006 was passed, potentially creating a market that would permit investment advisors to recommend their own funds, some firms have been awaiting further guidance.
One of new rules would ensure that workers receive unbiased advice about how to invest in their individual retirement accounts or 401(k) plans. If adopted, it would provide safeguards to prevent investment advisors from slanting advice for their own financial gain. It would also require that investment advisors disclose their fees, and that computer models used to offer advice be certified as objective and unbiased Read the entire article here
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