Who Should Watch
This Webinar is for insurance carriers, broker-dealers, advisers, and service providers to ERISA plans and IRAs. CXOs, senior leaders of insurance carriers, compliance, risk and legal professionals, distribution, marketing, and others financial professionals who need a high level overview of the change and what it actually may mean for your firms going forward.
This is a LIMRA/LOMA member benefit webinar. Registration is open to home/corporate office employees of LIMRA/LOMA member companies. Membership will be verified upon registration
The Department of Labor's Prohibited Transaction Exemption 2020-02, called Improving Investment Advice for Workers and Retirees, expands the definition of fiduciary advice under ERISA to recommendations about rollovers and IRA investments. It then provides an exemption, or exception, to the prohibited transaction rules in ERISA and the Internal Revenue Code, but with conditions. For insurance carriers, broker-dealers, and investment advisers that intend to utilize the Prohibited Transaction Exemption 2020-02, a heavy compliance burden lies ahead. Firms will need to develop a comprehensive process for measuring reasonable compensation and document how inherent conflicts of interest are mitigated. New changes in compliance programs, policies, and procedures must be in place by the end of the year (December 20, 2021). In some cases, it could mean a complete overhaul of your compliance platform and in your training and education program, including supervision practices.
Alternatively, insurance companies and agents may continue to rely on PTE 84-24, which provides an exemption for sales of insurance contracts and annuities. Commissions paid by the insurance company to agents are permissible under the exemption. Although this is a practical approach, the word on the street is the DOL may go back to the Obama era 84-24, which means fixed indexed and variable annuities would be taken out of 84-24. If so, they will likely have to fall under 2020-02, meaning insurance companies will have to sign on as co-fiduciaries, at least for insurance-only agents and brokers who sell fixed indexed annuities. That's a big deal.
We will cover all of these critical details and much more over this five-part webinar series.
- DOL Fiduciary Rule: Practical Implications for Insurance Carriers
- Prohibited Transaction Exemption 2020-02: Registered-Broker Dealer Compliance Considerations
May 19, 2:00 – 3:00 p.m. EDT
- Prohibited Transaction Exemption 2020-02: Investment Advisor Compliance and Regulatory Impacts
June 9, 2:00 – 3:00 p.m. EDT
- Prohibited Transaction Exemption 2020-02: Potential Compliance Implications for Insurance Carriers Relying on PTE 84-24 (and Alternatives)
July 7, 2:00 – 3:00 p.m. EDT
- DOL Fiduciary Rule Under the Biden Administration
Aug 11, 2:00 – 3:00 p.m. EDT