To help advisors understand their fiduciary responsibilities, as well as those of their retirement-plan clients, Principal Financial Group® has partnered with Groom Law Group to answer some frequently asked questions on the final fiduciary rule.

“Like advisors, our goal is to minimize disruption for plan sponsors as we work to understand the impact of the new fiduciary regulation,” said Greg Burrows, senior vice president of retirement and income solutions at Principal®. “We want to help separate the facts from the myths in this changing environment.”

The recent Department of Labor regulation broadens who is considered an investment-advice fiduciary under the Employee Retirement Income Security Act (ERISA). Our new Q&A dives into common questions we’re hearing from advisors, including:

  • What’s in the new fiduciary regulation and what’s changing?
  • How does the regulation affect 401(k) plan provider selection?
  • What should fiduciaries think about when selecting investments?
  • Active vs. passive investments: what are the considerations?

ERISA 101
For those who might need a quick refresher, the Q&A kicks off by covering foundational concepts of ERISA. It includes background on the typical fiduciary governance structure for a 401(k) retirement plan.

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Insurance products and plan administrative services are provided by Principal Life Insurance Company. Principal Funds are distributed by Principal Funds Distributor, Inc. Securities are offered through Principal Securities, Inc., 800-547-7754, Member SIPC and/or independent broker/dealers. Securities sold by a Principal Securities Registered Representative are offered through Principal Securities, Inc. Principal Funds Distributor, Principal Securities and Principal Life are members of the Principal Financial Group®, Des Moines, IA 50392.

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