Proposed DOL fiduciary rule exemption could impact IMOs
January 10, 2017 by Kristen Beckman
The U.S. Department of Labor sent a proposed exemption to the Office of Management and Budget last week related to the classification of IMOs as financial institutions under the department’s fiduciary rule.
Michael Trupo, a spokesman for the Labor Department confirmed the proposed exemption is under review, although the content is not yet finalized. Before it is finalized, the exemption would be subject to a public notice and comment process, Trupo said.
The DOL’s fiduciary rule, released in April of 2016 and set to go into effect in April of this year, designated carriers, banks, broker-dealers and RIAs as financial institutions allowed to sign best interest contracts with consumers, leaving IMOs in an uncertain position with respect to the distribution of fixed annuity products.
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