DoL overhauls retirement rules. Here’s what advisors need to know
But it’s not entirely clear how the disclosure requirements will be enforced, experts say. That enforcement component is critical to how effective the regulation will be, says Jasmin Sethi, associate director of policy research at investment research firm Morningstar.
“Will they say disclosure is enough or will they say you have to change your practices here? That kind of thing will really determine what kind of protections there are for investors,” Sethi says.
Both Reg BI and the Labor Department proposal leave a lot to the imagination when it comes to how they will be enforced, says Sethi. “There is a lot of vagueness in the language.”