In a November 17, 2023 article published by Law 360, Cohen & Buckmann partner Jeff Mamorsky examines the recent Ninth Circuit decision, Bugielski v. AT&T which highlights the duty to disclose and a fiduciary’s duty to review a financial adviser’s total direct and indirect compensation as required by ERISA. The standards applied in Bugielski are also contained in the November 3, 2023 proposed DOL investment advice fiduciary regulation that explicitly conditions the availability of Prohibited Transaction Exemption (PTE) 2020-02 on the fiduciary adviser’s compensation—direct or indirect—being reasonable. The sponsor fiduciary’s obligation to review and monitor indirect compensation would also apply to fiduciary advisors. In addition to monitoring the reasonableness of the adviser’s indirect compensation, there are several other conditions in the proposal related to the impartial conduct standards that may also require review and monitoring that are discussed in the article.