Retirement Security Rule: Definition of an Investment Advice Fiduciary

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The Retirement Security Rule protects retirement investors from harmful conflicts of interest when getting advice about their investments in retirement accounts. Learn more about what this rule does and how you're protected.

What does the Retirement Security Rule do?

Investors who are making decisions for their retirement savings expect advice from trusted financial professionals to be in the best interest of the retirement investor, not in the interests of the financial professional. This rule makes sure it is.

Listen to President Joe Biden explain more from when the rule was first proposed.

How does the rule affect investment advice?

It outlines when investment advice providers are acting in a fiduciary role and therefore must follow strict rules of conduct. Generally, fiduciary advice providers must:

  • give advice that is prudent and loyal.
  • avoid misleading statements about conflicts of interest, fees, and investments.
  • follow policies and procedures designed to ensure the advice given is in an investor's best interest.
  • charge no more than is reasonable for their services.
  • carefully manage their conflicts of interest and give investors basic information about them.

Why did EBSA issue this rule?

EBSA's mission is to protect the job-based retirement, health and other welfare plan benefits of America's workers and their families. Requiring trusted investment advice providers to comply with fiduciary standards protects investors from harmful conflicts of interest that could reduce their retirement savings.

Learn more about retirement security

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  • When you're close to retirement, you need to consider both your financial and health care plans.