The House of Representatives Wednesday passed a bill that would allow 401(k) plan administrators to also offer investment advice, The New York Times reports. The bill would also allow employees who hold company stock in a 401(k) plan after three years.
- The measure passed 271 to 157, will nearly full support from the Republicans and around a quarter of the Democrats.
Those opposed to the bill cited a potential conflict of interest similar to the scandals that have emerged on Wall Street recently. Some question whether investment companies that administer 401(k) programs should also offer advice.
As it moves to the Senate, some say that it faces strong opposition, as a nearly identical bill was not acted upon last year. Both houses of Congress have favored bills that have put stricter limits on advice, Dallas Salisbury, president of the Employee Benefit Research Institute, told The Times.
The staff of Mutual Fund Market News ("MFMN") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MFMN, and have not prepared, sponsored, endorsed, or approved these summaries.