NAIFA Statement on DOL Proposed Regulation Redefining Fiduciary under ERISA

NAIFA President Juli Y. McNeely, LUTCF, CFP, CLU, issued the following statement:

“It will take some time to read and analyze the regulation before we can determine its impact on NAIFA members and the families they serve in preparing for retirement. 
 
“According to the DOL’s summary of the proposed regulations, fiduciaries must provide impartial advice in their clients’ best interests - and cannot accept payments creating a conflict of interest – unless they satisfy one of two, possibly three, exemptions.
 
“The exemptions are lengthy and will require careful reading. Generally, the advisor and the client would be required to enter into a written contract that has specific provisions, including that all advice be in the best interests of the client, that conflicts be clearly disclosed, and that procedures be in place to encourage advisors to make recommendations in the clients' best interests.
 
“There are new enforcement provisions that also need analysis to determine if the end result will be that consumers have less access or choice in engaging financial professionals to help them plan for retirement.”
 


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