The highly anticipated Department of Labor (DOL) Fiduciary Rule delay was sent to the Office of Management and Budget (OMB) Wednesday for final review. While the delay of 18 months is expected to be finalized next week for the Proposed Rule, AmeriLife will keep you apprised of the Proposed Rule delay in the full implementation, from January 1, 2018, to July 1, 2019.

The Proposed Rule is not expected to change the fact that following June 9, 2017, insurance agents are now and will remain fiduciaries for any annuities or other insurance products sold with respect to qualified funds. This means those agents seeking to earn commissions from the sale of such products are required to adhere to the modified version of PTE 84-24 (including, adhering to impartial conduct standards, earning no more than reasonable compensation, and making appropriate disclosures).

The DOL has argued that the Proposed Rule delay is needed in order to do the following:

    • Complete their review of the Fiduciary Rule as required by the Presidential Memorandum dated February 3, 2017
    • Release a “new and more streamlined class exemption built in large part on recent innovations in the financial services industry”
    • Coordinate with the Securities and Exchange Commission in development of future standards of conduct, as well as “avoid obligating financial services providers to incur costs to comply with conditions, which may be revised, repealed or replaced.”

AmeriLife will provide more information about the DOL’s Fiduciary Rule delay as details become available. To view the posting by the Office of Information and Regulatory Affairs, click here.



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