Investment News reports that investment advisors are not altogether happy about the Pension Protection Act (PPA) provision that provides fiduciary relief for providing investment advice to 401(k) participants.
The reason? The PPA’s fee restrictions on face-to-face advice. Their lobbyists, says Investment News, are trying to convince Congress that the restrictions in the Act were a mistake and should be fixed in a follow up technical corrections bill before Congress adjourns for the year – and before the January 1, 2007 effective date.
But critics of the move see the price cap as a deliberate component of a legislative compromise – one that should remain in effect.
To be continued.
Here is the link to the Investment News article.