DOL’s new investment advice proposal intends to replace vacated fiduciary rule
July 8, 2020 by Insurance Forums Staff
The U.S. Department of Labor (DOL) recently issued a new proposal aimed at improving investment advice provided to workers and retirees. The measure includes a best interest standard intended to align with a broader investment advice regulation (Reg BI) issued by the Securities and Exchange Commission (SEC) that took effect June 30, as well as a complementary model regulation for annuity sales adopted earlier this year by the National Association of Insurance Commissioners (NAIC).
The proposed new exemption for investment advice fiduciaries would allow them to receive a “wide variety of payments that would otherwise violate the prohibited transaction rules.”