Financial Brokerage – DOL Fiduciary Ruling

On April 6th, the DOL released its new and final ruling (1,023 pages) explaining the definition of a fiduciary and the new regulations impacting financial service professionals, including those marketing fixed indexed annuities.  This new rule will have a “phased” implementation approach starting in April, 2017.  The new rule will require providers to act in the client’s best interest, disclose conflicts of interest and fees/commissions, and require an agreement be signed with the client for qualified funds.  The full impact of the law is still under interpretation.  Currently, there is much speculation on what may occur and not enough solid information for us to make adequate recommendations to our producers.

The House of Representatives has passed a resolution to kill this bill, however, President Obama has vowed to veto the resolution.  We anticipate legal challenges to the ruling, SEC drafts of their own rule, as well as a host of other issues that will arise in the near future.

Be assured Financial Brokerage will keep you informed of the latest information as it becomes available.  We will be working to provide the necessary technology and structure in order for you to continue marketing these products in the best interest of your client as you have in the past!

Edward Wieger – CEO
Posted in Bulletins.