Although the Pension Protection Act permits 401(k) fund administrators to give advice to participants as long as fees collected from the advice remain constant, no matter what the investment choice, it doesn’t address the problems that arise when the advice steers investors into funds run by the 401(k) administrator itself, The Wall Street Journal reports.

Facing off in a debate on the pros and cons of offering advice for The Journal recently were Nicholas A. Nicolette, president of the Financial Planning Association, and David Kudla, chief investment strategist at Mainstay Capital. Although Nicolette has reservations about providing advice—particularly if it benefits the investment advisory firm rather than the investor—he believes it’s a good idea, but Kudla believes the Department of Labor still hasn’t provided adequate interpretive guidance to protect fiduciaries from liability.

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