DOL Rule is a Go

News Image 05-25-2017

Department of Labor Secretary Acosta confirmed on Monday that the fiduciary rule will begin phasing in June 9, requiring a higher standard of care for advice given on qualified retirement investments. The full requirements will go into effect on Jan. 1, 2018, barring further regulatory or legislative changes.

What this means for you

Starting June 9, those who give advice on investments in retirement accounts will be held to the Impartial Conduct Standards, which has three requirements:

  • Advice is in the best interest of the customer
  • Compensation is reasonable
  • Statements about investment transactions, compensation and conflicts of interest are not misleading
Between now and the end of the year, the current Prohibited Transaction Exemption (PTE) 84-24 can be used to sell all variable and fixed indexed annuities. While the full requirements of the Best Interest Contract Exemption (BICE) do not go into effect until Jan. 1, 2018, firms can decide between the two exemptions in the near-term.

We're ready to support you

BUA has been a leader of change since 1979. We turn regulatory events into opportunities to better support our partners, and ultimately, your clients.

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Contact

Tim Luby
National Sales Director - Annuities
Phone: 330.576.1756
Toll Free: 1.800.792.6795
TimL@buaweb.com