Labor Dept. Proposes New Advisor Regulation to Crack Down on ‘Junk Fees’ and Conflicts of Interest

The Department of Labor is proposing a new rule to crack down on conflicts of interest for advisors working with clients planning for retirement. The rule would cover advisors who make one-time recommendations involving the rollover of an employer-sponsored plan into an IRA or annuity.

The Biden administration is billing the proposal, which would also apply to advisors working with retirement plan sponsors, as an effort to curb what it calls junk fees in an area of the advice sector that operates outside the scope of the Securities…