SECURE Act 3.0 Floated in the House

Members of the House have introduced legislation that could form the basis for a forthcoming "SECURE Act 3.0" going forward. The proposal focuses on amending the definition of "fiduciary" once again to include an individual who, for a fee, provides advice or makes any recommendations on investment choices, including asset rollovers. The proposal would also clarify that the standard would apply to advisors who receive fees or compensation from any source (including commissions) if those funds were connected to, or resulted from, the recommendation. The proposal would also broaden participants' ability to sue for breach of fiduciary duty, particularly in the case of defined benefit plan participants. The package would seek to ban mandatory arbitration provisions, class action waivers and certain other clauses designed to limit participants' ability to hold plans and employers accountable for wrongfully denied benefits. For more information on the current investment advice fiduciary standard, visit Tax Facts Online. Read More: Link to Q3982.