Which federal agency primarily enforces fiduciary rules for retirement plans?

Prepare for the Canon Financial Institute CFIRS Exam with flashcards and multiple choice questions. Each question comes with hints and explanations for better understanding. Get ready to excel in your exam!

The Department of Labor (DOL) is the federal agency primarily responsible for enforcing fiduciary rules related to retirement plans, particularly those governed under the Employee Retirement Income Security Act (ERISA). This act sets standards for pension and health plans in the private industry to provide protection for individuals in these plans. The Department of Labor's Employee Benefits Security Administration (EBSA) specifically oversees compliance with fiduciary duties, ensuring that those who manage retirement plan assets act in the best interest of plan participants and beneficiaries. This oversight includes monitoring investment practices, providing educational resources, and enforcing penalties for violations of fiduciary responsibilities.

In contrast, while other agencies like the Securities and Exchange Commission have a role in regulating securities and protecting investors, they do not primarily manage fiduciary standards for retirement plans. The Department of Commerce focuses on promoting economic growth and trade which is not specific to retirement plan oversight. The Office of the Comptroller of the Currency regulates national banks and federal savings associations, making it less relevant to the fiduciary frameworks applicable to retirement plans. Thus, the role of the Department of Labor is crucial in safeguarding the interests of individuals participating in retirement plans.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy