DOL Guidance on Fiduciary Rule Does Little to Clarify Ambiguities

The Department of Labor (DOL) issued new fiduciary rule guidance in the form of 34 frequently-asked questions, which focus primarily on the best interest contract exemption, grandfather issues, and some compensation issues. 

This is the first in a series of three FAQs the DOL has said it will issue. The current FAQ explains that new money can be invested to an established portfolio without negating the DOL rule’s grandfather clause, and that selling an asset will not negate the grandfather provision unless there is an advisor makes a recommendation to purchase a new asset that would result in new compensation.

Otherwise, however, the FAQ lacks significant clarity or simply restates what is in the rule and its preamble.  NAIFA hopes that future guidance from DOL will address remaining ambiguities.
 
  • Posted November 1, 2016 IN


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