(Reuters) - The U.S. Department of Labor's divisive plan to establish more stringent legal responsibilities for retirement plan advisers could be in trouble.
U.S. House Democrats lashed out at the Labor Department in a letter this week over its efforts to revise a controversial proposal that would update the definition of "fiduciary" under the Employee Retirement Income Securities Act, or ERISA.
It is the latest turn in a tussle over a plan that would apply to both advisers to retirement plans and those who give advice to investors in individual retirement accounts. Many financial advisers are concerned the rule will limit the types of fees they can collect for servicing IRA accounts and make it a money-losing prospect to provide such advice.
The plan, in broad terms, pits the Labor Department against various industry groups. The department is concerned that advisers may be swayed to recommend securities, such as certain mutual funds, because of special compensation
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