The changes would allow companies to offer employees with 401(k) plans professional advice about their investments. Critics say that the bill allows this advice to come from the same financial service firms that provide the mutual funds for a company's 401(k) plan, suggesting conflicts of interests similar to those revealed in recent Wall Street scandals. Supporters say that the bill includes protections, making it clear that the firm giving investment advice is legally responsible. The bill passed 271 to 157 in the House and its fate in the Senate is uncertain.
See "House Passes Bill on Pension Law Changes", Los Angeles Times, May 14, 2003