The bill, which has been designated H.R. 2269, clarifies that plan sponsors are shielded from liability from individual advice given by professional advisers to individual participants, but will remain responsible as an ERISA fiduciary for the prudent selection and review of advice providers.
With little changed from last year’s bill, it seems likely that last year’s opponents will resurface as well.
Today Pittsburgh-based retirement services provider Invesmart took a stand in opposition to the bill, stating that it “will allow money managers to recommend their own investment products to retirement plan participants, creating a conflict of interest.” Invesmart offers participant investment advice through an agreement with Morningstar.
The bill gained several new co-sponsors yesterday, including two additional Democrats — Rep. Ellen Tauscher (D-CA), and Rep. Rush Holt (D-NJ).
The bill’s co-sponsors now include:
- House Majority Leader Dick Armey (R-TX)
- House Financial Services Committee Chairman Michael Oxley (R-OH)
- House Employer-Employee Relations Subcommittee Chairman Sam Johnson (R-TX)
- House Capital Markets Subcommittee Chairman Richard Baker (R-LA)
- Rep. Norm Dicks (D-WA)
- Rep. Scott McInnis (R-CO)
- Rep. Dave Camp (R-MI)
- Rep. Brian Baird (D-WA)
- Rep. Phil English (R-PA)
- Rep. Rush Holt (D-NJ)
- Rep. Marge Roukema (R-NJ)
- Rep. Ellen Tauscher (D-CA)
- Rep. Gil Gutknecht (R-MN)
- Rep. Adam Smith (D-WA)
- Rep. Tom Tancredo (R-CO)
- Rep. Ken Lucas (D-KY)
- Rep. Mark Foley (R-FL)
– Nevin Adams firstname.lastname@example.org