CBS MarketWatch reports: “Guidance system: Congress hammering out 401(k) advice law.” The article discusses the need for a bill introduced by Mike Enzi, R-Wyo., last week, entitled “the Retirement Security Advice Act of 2003” (S. 1698)–that would provide workers with access to professional investment advice to help them make more informed decisions about their investment options. The bill has been referred to the Senate Health, Education, Labor and Pensions Committee. You can access information about the bill here.
The Heritage Foundation supports the bill as indicated in this Executive Memorandum: “Congress Should Improve Workers’ Access to Better Advice for Retirement Investing.” The Memorandum describes the bill as follows:
H.R. 1000 and S. 1698 amend ERISA to allow a “fiduciary advisor” to offer prudent and objective investment advice that is solely in the interest of retirement plan participants. Plan managers would be required to select the best advisors available and monitor their activities. The advisors would have to disclose in writing their relationship to any company that offers products through the retirement plan as well as any fees or other compensation that they would receive. These disclosures would have to be made when the relationship is established and annually thereafter. Workers would have the ability to accept or reject any investment advice they receive.