US fiduciary rules could clear path for structured products

Issuers could benefit from new Department of Labor regulation

department-of-labor
US Department of Labor rules will place intermediaries interacting with retirees under a fiduciary duty

If an investment adviser receives a commission payment from an issuer for the sale of a particular product, is that a breach of the adviser's fiduciary duty? For US retirement plans, the answer is yes, but the duty has never applied to intermediaries servicing clients through brokerage accounts.

This so-called loophole is being removed by a new rule designed by the US Department of Labor (DoL), and market participants warn it may have serious ramifications on sales of the most common structured

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