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Professor Norman Stein Testifies at House Subcommittee Hearing on Fiduciary Definition

July 26, 2011

Professor Norman Stein testified before the House Education and the Workforce Subcommittee on Health, Employment, Labor and Pensions regarding the Department of Labor's proposal to expand the definition of fiduciary under the Employee Retirement Income Security Act of 1974. 

The hearing, held in Washington, D.C. on July 26, was convened to examine the impact the proposal may have on the retirement security of workers and retirees. The proposal seeks to require investment professionals advising employers and workers with retirement plans to act in the best interest of their clients.

Stein said under the current system, conflicts of interest could arise when unsophisticated investors seek advice from advisers who receive compensation from the vendors of the products they recommend.

"These kinds of conflicts are going to hurt people and we need to prevent them," said Stein.

Stein was quoted in an article by the Society for Human Resource Management on July 29.

Bloomberg BusinessWeek quoted Stein on July 26 in "Firms May Drop Millions of IRA Savers on Rule, Sifma Says."

On July 25, Stein was quoted by Pensions & Investments in "DOL Fiduciary Ruling Being Postponed Yet Again," an article detailing the Department of Labor's revised delivery date for the broader definition of fiduciaries.

A nationally recognized authority on pension law, employee benefits and tax law, Professor Stein is a senior policy counsel to the Pension Rights Center and testifies frequently before Congress.